Quote:
Originally Posted by SkykingUSA
I'm not sure we can tell you which way to go with this. We can only tell you some positives and negatives about both options, and then you have to decide for yourself which way suits you best.
Decide what your goal is, then pick what you're comfortable with. Look at the two extremes, then pick one of them, or something in between:
$0 deposit, and only pay the first month payment upon signing. This way, over the term of the lease you will likely pay more because the money factor will apply to the full amount. However, consider putting the down payment money you would have spent into a high interest savings account or into an investment account of some type so you can earn money on it and factor that into your calculations too.
Pay a huge up front down payment. You will likely pay the least this way because the money factor (interest) will only apply to the non-down payment portion. However, you have spent more if the car is totaled. You also lose money on opportunity cost because the money you put towards the down payment can no longer earn you interest through a savings account or investment account.
You really need to run the numbers and consider what is more important to you, then make a decision and stick with it. That is my two cents.
Look at the bright side: after all this thinking and deciding, you'll have a car to have fun with!
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Appreciate the time taken to put your input! Will definitely go with the $0 route. Thanks! And yes definitely can't wait for the car, the $0 route gets me the car in less than a month as it is incoming and wouldn't have to be be custom ordered (2 to 3 months).
Quote:
Originally Posted by alewifebp
Besides the risks already pointed out about down payments or even paying the taxes upfront, I always ask myself: would I rather pay that money now or pay it later over time?
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Oh yes. Will invest that $6000 or put aside for next 5 payments.