When you lease a car, you will have to put down an initial payment. This is also referred to an initial rental, or a deposit. It can also be called a down payment, it varies depending on who you talk to. Many think they are interchangeable, and in the context of leasing they do essentially mean the same thing, but there are key differences that you should know about. In this article, we are going to look at the difference between the two, and whether a lease deposit is refundable...
When you lease a car you will have to pay an initial payment. This is also called a down payment, they are the same thing but in this article we’ll refer to it as the initial payment. The initial payment is essentially a deposit that you put down at the start of your contract and traditionally used to be a number of monthly payments up to 12 months. But in recent years it’s become more common to just put down a cash amount and we’ve had anything from £1000 to £20,000 depending on the vehicle. But, how can you pay it? In this article we look into how the initial payment is calculated and the different ways you can pay for it.
The initial payment on a car lease is the amount of money that the driver can afford to put towards the overall lease cost up front. Not to be confused with a deposit, the initial payment allows the driver to spread the remaining cost over the number of months in their contract. The more that can be paid up front, the less the monthly payments will be.
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