A Guide to No-Deposit Car Leasing
No-deposit car leasing is not the standard way that car leasing deals are arranged, but it is a popular option that you may want to consider. Here we look at what it is along with the key considerations to keep in mind.
What Is No-Deposit Car Leasing?
No-deposit car leasing is very similar to standard car leasing. This means you lease a car (which is normally brand new) for a certain period of time determined by the contract, and you then agree to pay monthly instalments until the end of the contract, when you hand the car back.
However, with a normal leasing arrangement, you will usually pay a larger amount in the first month. This will usually be equal to between three and nine months of payments.
With no-deposit car leasing, all the monthly payments are the same amount, even the first payment. So you do not have to come up with a large sum of money at the start of the arrangement.
It sometimes has different names including zero-deposit leasing and 0-down leasing. These all refer to the same thing.
You might also see no-deposit contracts referred to as: 1 + 35 months. This means that the first month in a 36-month contract is equal to one month’s payment.
More Expensive Monthly Payments
With no-deposit car leasing, the total cost of the contract is divided into equal monthly payments. These will usually be more expensive than the regular payments you would pay if you paid a larger amount in the first month.
You can also add other costs including servicing and maintenance, just like with any leasing deal, and this increases the monthly payments.
Why is it a Popular Option?
This is a more popular option because it provides greater flexibility for customers. If you want to lease a car but you cannot pay a large amount upfront, a no-deposit lease can make it easier to get started.
Can You Get One?
It’s not always possible to get a no-deposit lease, and the leasing company will decide whether they can offer this to you.
Not all leasing companies will provide no-deposit leases, and some may only provide then to certain customers. You will have to ask them to find out whether they can offer you one.
Consider No-Deposit Car Leasing
No-deposit car leasing is a popular option for many people, and it may be suitable for you depending on your circumstances. If you like the idea of paying a fixed monthly cost for the entire leasing period, it is worth investigating further. So, consider your options and decide whether a no-deposit lease is right for you.