How Do You Lease a Car Without a Deposit?


Quick Answer

Typically, a manufacturer advertises or offers a lease deal that will include a certain deposit, or down-payment, amount. Zero-deposit lease deals are rare, and to qualify for one, you need excellent credit. You may be able to negotiate a zero-deposit lease if one is not offered, but your monthly payment will be higher than it would be without the deposit, according to How Stuff Works.

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How Do You Lease a Car Without a Deposit?
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Full Answer

It's generally worth finding a lease deal with a zero-deposit amount because, unlike when you purchase a car, your deposit does not provide you with any equity in the vehicle. You might start by looking for promotional deals. Honda, in particular, offers semi-frequent deals with no down-payment, no taxes, no security and no first month's payment, as of November 2015. However, you usually only find these terms on base-model vehicles, notes Leaseguide.com

How Stuff Works states that the deposit amount is just one of the many numbers in a lease deal, and it's important to pay attention to each of those numbers. Besides the monthly payment, there's also interest, total mileage allotment, taxes and total monthly term. Some companies may also ask for a security deposit, similar to what you would pay when renting a home. You may also see the phrase "first month's payment due at signing." The company may have disposition fees that you need to pay at the end of the lease, and you should consider the residual value of the car, which is a major factor in those other numbers. A vehicle with a higher residual value will be worth more to the automaker or finance company at the end of the lease, so it will have a lower payment and deposit. Each of these factors can often be negotiated.

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