How not to fall for the advertising bait? What is the difference between Sign & Drive, $ 0 Down or Down payment?
The Internet and ads are full of offers for leasing new cars! How do you understand where the “fair price” is, and where you overpay, although the price in advertising is lower? To do this, you need to understand the difference between offers with Sign & Drive, $ 0 Down, or Down payment
- Down payment – a non-refundable amount that you pay when signing a contract to reduce your monthly payments. I never recommend making a down payment, except in situations when it is simply necessary to receive a lease.
- $ 0 down – upon signing the contract, you do not pay the down payment, but only pay the expenses related to leasing: payment for the first month, registration and obtaining a license plate for the car (from $ 200 to $ 500), bank fee or acquisition fee (from $ 600 to $ 800), sometimes a dealer fee (from $ 500 to $ 900). I recommend clarifying what the final amount will be, because it can be very different. Someone under $ 0 down offers only the payment of the first month and registration, while someone completely all fee and it can result in under $ 2500-3000! Always find out the amount when signing or total due at signing.
- Sign & Drive – You don’t pay anything at all upon signing the contract! You simply take the car and leave! The next payment is only a month later! This is the ideal approach to leasing, but only if you have an ideal credit history!
PLEASE READ THE ADVERTISING CAREFULLY AND ALWAYS REFINE ALL NUANCES!
For “Sign & Drive” $199 per month, without specifying the amount of all payments when signing the contract, can actually be much more expensive than $229. It’s all simple math! Every $1,000 you pay when you sign a 36 month contract reduces your monthly payment by about $27! Therefore, if you are told $199 per month, but upon signing you will pay a total amount of $ 2000, this means that in reality you are paying $253 per month! And so $229 a month “Sign & Drive” is $24 cheaper, which is $864 in three years!
All ALFACAR prices are absolutely transparent and we always write in our advertisements what you pay upon signing the contract, as well as monthly payments for Sign & Drive! This is called FAIR PRICE!