EXAMPLE OF LEASE INCEPTION COSTS

$399.00 $400.00 $1500.00 $379.80 $12.50 $10.00 $795.00  $199.00   $1105.55  $4,800.85 =

FIRST MONTHS LEASE PAYMENT   REFUNDABLE SECURITY DEPOSIT  DOWN PAYMENT “ZERO DOWN” REFERS LINE#3  MOTOR VEHICLE FEES  TIRE FEE  BATTERY FEE  BANK FEE  DOCUMENTARY FEE  USE TAX (PAID UPFRONT)  TOTAL INCEPTION COST

WHAT DOES
“ZERO DOWN PAYMENT”
MEAN ?

$0 ZERO DOWN PAYMENT MEANS
YOU ARE NOT PUTTING ANY MONEY
DOWN TO REDUCE THE CAPITALIZED
COST (PRICE) OF THE VEHICLE.

WHEN YOU PUT MONEY DOWN YOU
ARE PUTTING THE MONEY DIRECTLY
TO THE PRINCIPAL THUS REDUCING
THE MONTHLY PAYMENT.

YOU STILL MUST PAY NORMAL
INCEPTION COSTS AS STATED
ABOVE, HOWEVER ITEM #3 WILL
BE $0 ZERO AND THE TOTAL
INCEPTION COSTS FOR THE
EXAMPLE ABOVE WITHOUT A
DOWN PAYMENT WOULD BE $3300.85   
($4800.85 MINUS $1500.00 = $3300.85)

THEREFORE
“$0 DOWN PAYMENT”
&
“NO MONEY DOWN”

DOES NOT MEAN

“$0 DUE AT SIGNING”
&
 “$0 INCEPTION COSTS”

______

 

MOST CONSUMERS ASSUME

“$0 ZERO DOWN PAYMENT” & “NO MONEY DOWN” 

MEANS THEY DO NOT HAVE TO
COME UP WITH ANY CASH
THIS IS AN INCORRECT
ASSUMPTION!

SEE ALSO:
 “WHAT ARE NORMAL LEASE INCEPTION COSTS”