One Time Lease Payment – Is It Worth It?


BMW M6 Convertible
You may see this car leasing option more readily available than before. A one time lease payment is based on a set term (24, 36 or perhaps 48 months) and instead of making the monthly auto lease payment over your term, you make one payment which covers the whole term.

Now if you have the money to layout then it is certainly to your advantage because now you don’t have to make 36 monthly payments, you’ve paid already and can forget about it. The other advantage to this form of car lease payment is that typically (but not in all cases so check with the dealership) your lease interest rate can be lower.

This is still a traditional lease in that you have the option of buying the vehicle out afterwards or giving back the keys. You also are on the hook for any damages to the vehicle when you return it, or you can purchase the worry free insurance that is offered (I strongly recommend it!).

KEEP IN MIND, that typically the lease payment they are providing you will be based on a low km lease – typically 20,000 kms/year. If you do more than that you can purchase excess kms from the get go. Also understand fully if there is anything over and above taxes due at signing. Bottomline READ THE FINE PRINT in the advertisements, they tell all!!

Is a one time lease payment worth it – for sure if you want to pay a lower interest rate, if you have the cash for a one time payment then of course you drive for the set term without having to worry about making a lease payment.

 

Creative Commons License photo credit: Manik.

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