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We are faced with numerous life scenarios that require us to make decisions on a daily basis. What clothes to wear, what food to eat, what activities to partake in that day, etc. Some financial decisions we might have to make are not so much clear cut. After all, if we had the chance to choose how our finances would be, we would all be billionaires living on some luxury island.

Needless to say, everyone wants to own a car at some point in their life but not all can afford to pay for the full amount the dealership wants. This factor has made certain car dealerships and subprime lenders formulate new ways that would enable such people to drive away their new cars.

One of such methods is leasing a car. Did you know that some auto dealerships have offers such as a $99 car lease no money down? Leasing a car has its own perks and a few drawbacks which we shall get to find out in this post. Take a look at all you need to know about no down payment car lease.

What Is Car Leasing?

Often a misunderstood term, leasing a car simply means getting a new car without having to buy it. Confused? Let us put it this way, when a buyer wants to lease a vehicle, they are cutting a special deal with the dealers. Instead of paying right then for the vehicle, the buyer pays for the depreciation incurred during the time of the lease which usually lasts for about 2 or 3 years. The buyer also takes care of any other costs and fees incurred during the lease period. The buyer will have to make some money down when signing up for a lease arrangement. The deposit paid is not as much as the down payment which would have been made if purchasing the vehicle outright. Some dealerships have offers that do not obligate you to make a down payment. Two main terms associated with car leasing are;

  • Capitalized cost – this is the going price of the car you wish to lease. You may (and should) negotiate the cost price just as you would have done if you were buying the vehicle.
  • Residual value – this is the value of the car at the end of the lease and is almost (never) up for bargaining.

In practical, let us say you want to buy a Honda car with a cap cost of $30,000. The residual value three years from the time of buying will be $20,000. In this case, the buyer is on the hook for $10,000 plus interest and other fees incurred.

Types of Zero-down Car Leases

The prospects of leasing a car without putting down money can be very appealing. However, you may want to ask the dealer how their offer works since there are great differences between such deals. We are going to explain the basic forms of zero-down car leases to help you find the best option, the next time you look for zero down lease deals near me. Here are the four primary types of $0-down leases:

1. No Cap Cost Reduction $0-Down Car Lease

One of the ways in which you can obtain a zero-down car lease is through eliminating the cap cost reduction expense, also known as down payment. Although this $0 down vehicle lease comes with no down payment, you will still have to incur the first month’s payment, including official fees. The payments amount to the cash due at lease signing.

2. No Cap Reduction Cost + No First Month’s Payment

When leasing a car, dealers often require that you make payments for the first month before driving off with your new vehicle. Another form of a zero-down car lease is where the dealer rolls payment for the first month into the lease, along with the down payment. Therefore, you will only pay the official fees that your state requires at your lease signing. While this arrangement eliminates both the cap reduction cost and the first month’s payment at lease inception, your remaining monthly charges will be slightly higher due to the rolled-in costs.

3. No Down Payment + Dealer-Paid First Month’s Payment

Some automakers like Acura and Honda offer $0-down leases where customers make no down payment while the vehicle manufacturer makes the payment for the first month. Unlike other deals that roll the first month’s payment into your lease payments, the car company will waive that payment in this arrangement, and you only pay the official fees.

4. Sign and Drive or Zero Due at Signing

Some zero-down leases involve no out of pocket payments when signing the deal. The dealer can roll all the cash due at lease inception, including the official fees into your lease. In this way, you pay nothing when signing the lease, hence the name sign and drive lease.

A lease deal with no up-front cash or down payment does not automatically qualify for a great deal. The arrangement can make the deal more affordable when signing, but it may not do away with any costs.

Requirements To Get a $0 Down Lease Deal

When vehicle manufacturers and dealerships promote zero-down lease deals, you will often see them stating that the offers are only available to qualifying customers. In simple terms, the providers mean that customers must have stellar credit scores to secure those deals.

$99 Car Lease No Money Down

The primary requirement to qualify for zero down lease deal directly depends on a client’s credit score. As a result, we recommend that anyone looking to secure a special Zero down lease deal near me should know their credit score beforehand to avoid disappointments at the dealership. You should further keep in mind that $0 down lease deals tend to have higher monthly pay than deals with a down payment. They also tend to have a higher interest rate, making the car more expensive over the duration of the deal.

Leasing or Buying a Vehicle: Which Is The Best Option?

Many people become so confused about what option is best for them. However, it is not just a decision that should be based on one thing; there are a lot of things at stake when you decide to make a decision. There are a few questions one should ask themselves before deciding on either leasing or buying the car.

  1. The money factor  How much money are you willing to spend on buying or leasing a car and how much will you have saved in the short or long run? Do you have all the money prior to purchasing the vehicle?
  2. Would you want to own the very same car for a long period of time or you would like to mix it up a little bit after some time? (In 2 or 3 years)
  3. How often will you be driving your car? Will the mileage shoot up? Will there much wear and tear which would eventually bring down the residual value of the leased car?

With these questions in mind, it will be paramount to go over the pros and cons of both leasings a car and also buying.

Benefits of Leasing a Car

  1. Lower monthly payments: The costs incurred when signing up for a car lease are definitely lower than buying one outright. Little or absolutely no down payment is required. In most cases, it is not necessary for you to pay an upfront sales tax. At the end of the lease period, however, you may incur certain costs such as going past the allowable mileage, having unrepaired damages on the car, or terminating a car lease before the period expires.
  2. Fewer repair costs: When being covered by your manufacturer’s warranty for the period of your lease, you will have very few repair expenses to incur. When your dealership or manufacturer does not have any insurance covers or warranties, you can opt for instant auto insurance no down payment.
  3. Owning a new car more often: When you lease a car, you are able to own new cars with new technology and features more often than somebody else who chose to fully buy the car. Furthermore, you get a chance to spice up your life with different vehicles.
  4. No loan approval problems: When buying a car and wish to get financed, you may hit a stumbling block especially when you have a bad credit history. With car lease dealerships, your credit report does not matter. They sign over the car to you and have the authority to take it back should you default on your lease payment schedule or violate any lease terms.
  5. No hustles for selling a car: Once you have fully bought a car and wish to sell it in the future, you may have some worries about how to get a fair price for your car. For someone with a leased car, you do not have to worry about that, you will just return the car to the dealership and you may get a new one if you like.

Drawbacks Of Leasing a Car

  1. Penalties when you exceed the maximum allowed mileage
  2. Penalties for excessive wear and tear
  3. Monthly payments can be quite a task
  4. You may be subjected to generally higher insurance premiums
  5. Penalties when you terminate the lease before the term expires

Benefits Of Buying a Car

  1. You pay less in the long run: While monthly lease payment terms are generally less costly, it is not the case in the long run. You can build upon the equity in the long run when you decide to sell or trade in your car.
  2. No mileage restrictions: When you want the freedom to drive your car as far as you want as many times as you want, then buying is the best option for you. There are penalties imposed on those who go past the allowed maximum mileage when leasing the car.
  3. You can sell the car whenever you want: Buying a car means that it solely belongs to you and that you are not bound by any laws not to sell it. You can sell or trade in the car with another one even with a different dealership. When you lease a car, you are bound by the terms of the agreement to only deal directly with the leasing dealership.
  4. No restrictions on appearance: When you want to accessorize the vehicle or even have it custom made, buying is the option for you. Most car leasing companies prefer if you bring back the car to them at the end of the lease period in the same condition you took it with.

The Drawback Of Buying a Car

  1. Unpredictable resale values
  2. Depreciates over time
  3. Large down payment
  4. Higher monthly installments if being financed

How To Lease a Car?

If after going through the pros and cons of both leasing and buying, and you have put your eyes on leasing a car, there are some tips you have to follow;

1. Do Your Homework

Conduct extensive research before you set out looking for the best car for you to lease. Know what requirements you may be asked to provide, calculate the approximate amount of money you will spend, etc. Know the capitalized cost of the car you want plus the insurance costs and all other costs. With that information, you are ready to go to the dealership.

2. Look For Deeply Discounted Offers

There are so many dealerships and manufacturers who offer lease deals. Look for zero down lease deals near me and find out which of those dealerships have better offers for you. Be cautious though, as there may be hidden charges behind those lucrative deals.

3. Know All The Lease Requirements

Once you are at the dealership inquire about all the lease requirements they have. Will you be forced to pay money upfront or not? What is the total mileage requirement? The lease details vary from one dealership or manufacturer to another.

4. Negotiate The Price Down

Just like you would do when buying a new car, negotiate the price of the vehicle downward in order to get a fair price. Ensure you get some good negotiation skills before heading out to the dealership.

5. Watch Out For Dealer Markups

Dealer markups, also known as ‘the money factor’ can also be negotiated down. This is especially so much possible if you have essentially solid credit. The money factor, which is also referred to as the buy rate, determines the amount of money you will pay as part of your monthly lease rate.

6. Consider a Longer Lease

If you feel like you do not have much cash to pay the required monthly installments, you can opt for a longer lease. A longer lease, in this case, will reduce the amount you will be required to be paying monthly. There is a flip side to this though, owning the car for longer could mean more wear and tear and risks of going past the allowed mileage. If you are sure of taking good care of the car within this period, then go for it.

7. Carefully Go Through The Contract Before Committing

This is the most vital part of any leasing arrangement. There might be some dealerships that may try to con you into signing up for something you are not even aware of. Ensure to go through every detail of the agreement noting down any conflictual phrases or clauses. Ensure that the figures you had verbally agreed on are reflected in the document. Should you have any questions or concerns do not delay pointing it out and asking.

Lease a Car With No Down Payment

It is very possible to lease a car with no down payment. Even most car dealerships that have offers for leasing cars with a down payment can have special exceptions with no deposit made. Such leases have different requirements that a buyer should meet. Most dealerships advise their buyers to at least make a down payment prior to leasing out the car as it eventually has lots of financial implications in the long run. One may be forced to pay higher interest rates without making a deposit for the car. However, some car dealerships have rather fair interest rates charged brought upon the buyer.

no down payment car lease

Certain car manufacturers have the same offers too where you can lease a car with or without making a down payment. Companies such as Honda often run such promotions. Even though you pay a higher monthly installment, the leasing parameters are the same and nothing really changes. The value of the vehicle does not change whether a down payment has been made or not.

How to Get Out of a Car Lease

While leasing a car gets you one with up to date features and technology, one of the main drawbacks of doing so is that you cannot sell the car at any given time. There are instances where one is forced into selling the car but since they are not able to, they seek to terminate the lease. Returning the car to the dealership and asking them not to charge you for the car again sounds easy, right? It is not that simple though.

There are a number of repercussions to ending a car lease sooner than anticipated including heavy penalties. This is because the car is no longer new and they can no longer lease it out again. Different companies have different lease termination policies so it all depends on how your contract was put.

Ending a Lease Because Of Financial Hardships

Many leases that are terminated are as a result of tough financial times. You may have been discharged from your job, health concerns, a divorce, and many other financial problems. As long as you are still bound by the lease agreement which is a legal document, you are still not going to be given any special treatment. Should you wish to terminate the lease you will still be faced with hefty prices to pay.

Some companies might actually reconsider and let you suspend payment for a couple of months. You will still, eventually, have to pay it all back with interest. In some places, members of the military are the only exception in that case. They may be posted to a new station for long and hence might want to terminate the agreement. Not unless you are protected by state laws such as the military, you will be bounded to the later by the lease agreement.

Defaulting On Your Car Lease

Defaulting on a car lease is the worst possible thing that could happen. This would prompt the leasing company to initiate a number of actions that would eventually not only hurt you financially but also your credit score.

The company will have to repossess your vehicle and might even slap you with a repossession fee. They will also charge you an early termination penalty plus the payments of the remaining months. Failure to comply will get you sued and you can only imagine what that will do to your finances. Be assured your credit score will also perform dismally.

Defaulting on your lease will not only harm your credit score but will also prevent you from getting car leases from other companies anytime in the future. Defaulting on a lease should be your last resort after all other options have been exhausted.

Lease Buyout And Sale

This is one of the best methods of getting out of a lease without your credit score and finances getting harmed. In fact, you may walk out of it with some extra cash. Most lease contracts will show the rate at which the value of the car decreases. If not particularly sure, you can contact your lease dealers to take you through the buyout amount. Ensure that an out the door price is the one you have been given. Inquire about the termination fees and about any credits from your security deposit.

You can ask if there is any legal obligation you have not to sell the car, and again, refer to the lease agreement. Get a new willing buyer of the car, quote your price to him and agree to sell him at the price of or close to the payoff the leasing company wants. If successful, everyone goes home happy.

Top 10 Best Lease Deals $99

Even as competitive lease options continue to hit the market, $99 per month car leases are getting hard to come by. But we’ve researched multiple sources and compiled the 10 best zero to $99 car lease deals. With this selection, it means you can lease a car for less than $100 a month, and in some cases with no down payment.  

1. 2021 Kia Forte LXS FWD 4D

2021 Kia Forte LXS FWD 4D

With an MSRP of $20,920, this latest Kia Sedan is the first genuine lease deal you can get with $99 and no down payment. It also comes with 12-k miles annually for two years. But be ready to pay a processing and acquisition fee of $799 and $650 respectively. This is along with tax, freight, and tax charges. The offer is valid till 1/4/2021.

2. 2020 Chevrolet Trax LS

2020 Chevrolet Trax LS

If you don’t mind a lease transfer, this 2020 Chevy Trax could be yours for only $92.45 a month. The deal offers 15 months out of the 24-month original lease term.  And with up to 13,400 of the 20,000 total miles allowed on the contract, you’ll have a maximum of 893 miles every month. One caveat is that you must have a good credit history to get on this lease.

3. 2020 Kia Sportage LX

2020 Kia Sportage LX

For only $99 a month, this new Kia Sportage LX could be yours over a 24-month lease term. And it comes with a down payment of $3,000. For a no money down lease deal, you’ll be paying $199 for 36 months. Either way, you’ll have up to $6,245 in total savings.

4. 2020 Nissan Sentra

2020 Nissan Sentra

The 2020 S Sedan Nissan Sentra is a great option for those who want to lease for under $100 monthly. Going for only $99 every month, this car can be had on a 36-month lease term with 12-k miles each year. But unlike the first two offers, you’ll need to put down $2,999 when signing. The zero down option comes with a $189 monthly payment on the same terms.

5. 2021 Kia Seltos

2021 Kia Seltos

The new edition of the Kia Seltos LX AWD could be yours for only $99 monthly and $3,000 when signing for a 24-month lease term. Alternatively, pay $199 every month for three years with no down payment to lease this model. The best part is that both options deliver savings of up to $3,801.

6. 2020 Buick Encore

2020 Buick Encore

The new GX Preferred FWD trim of the 2020 Buick Encore is also going for $99 per month on a two-year lease. While you’ll put down $2,795 when signing, there’s no security deposit. This one-time offer is valid through 1/04/2021, for those who have a good credit history.

7. 2021 Kia Soul

2021 Kia Soul

The carryover Soul LX is yet another Kia model that can be had for $99 every month. And like its cousins, there’s a $3,000 deposit upon signing without the option for a zero-down payment. Even so, you’ll put away $2,818 in total savings.

8. 2021 Kia K5 LXS

2021 Kia K5 LXS

The K5 LXS configuration offers a good lease value at $99 a month with $3,000 due at signing. For the price, this fresh Kia model offers a 24-month lease contract. But you can choose a three-year term on a zero-down lease for $99 monthly. Both options will save you $4,030 off the MSRP.

9. 2020 Chevrolet Trax

2020 Chevrolet Trax

For the cheapest car lease in terms of monthly payments, this new FWD edition of Chevy Trax LS is hard to beat. Pay only $39 every month to use this SUV for twenty-four months. With a $23,090 MSRP, putting down $1,995 isn’t painstaking for this Sports Utility Vehicle offering 10K miles annually.

10. 2020 Kia Forte

2020 Kia Forte

With supplies for the 2021 Kia models flowing into dealerships, some 2020 models are still up for grabs. And this Kia Forte LXS configuration is fetching only $79 a month on a two-year lease with a $3,000 down payment. For a no money down offer, you’ll have to sign an extended 36-month contract with $159 each month. Whichever plan you choose, there’s up to $4,671 in savings.

Frequently Asked Questions (FAQ)

Can you lease a car with no money down?

Yes. Many dealerships will allow you to lease a vehicle with little or no money down under special car leases. However, the deal will result in higher monthly payments because you are not pre-paying various lease obligations.What is the best car lease deals right now 0 down?

The best car lease deal right now with zero down offer is the 2020 Chevrolet Trax LT FWD. The sign and drive deal gives you the best value for buck at $190 monthly payments for 39 months with $0-down.What cars can I lease for 100 a month?

Most dealerships would not provide car leases for $100 a month. The majority of vehicles leasing for 100 a month include previous years’ models and used cars. Also, you can lease a vehicle for 100 per month by making a larger down payment. Furthermore, car dealerships run special deals that let you buy cars at or less than $100 per month, but you must qualify for the deals through the manufacturer discounts. The six car lease deals in this article are all available at less than 100 a month.What is the best month to lease a car?

Most car dealerships run deals that make leasing car affordable almost all year round with different offers almost every month. You should keep checking your favorite car dealer regularly to find the best offers. However, car manufacturers are usually releasing new cars between September and December, making October to January the best months to lease a car.Is it better to lease a car for 24 or 36 months?

Whether to lease a car for 24 or 36 months depends on your preferences. Both lease periods are better under different terms and needs. The 24 month lease period is good if you want to stay with the car for a shorter period as you will not have to pay cancellation fees. However, the shorter lease deals tend to have higher monthly payments. The 36 months lease deal is effective if you want to pay smaller monthly payments. Nevertheless, the longer lease deals are usually more expensive over the duration of the contract.What credit score is needed for a lease?

The credit score needed to get a lease to vary among car dealers. A minimum score of about 620 will enable you to get a lease from most dealerships. However, you may need a high score of about 680 or higher to qualify for the competitive manufacturers’ special deals.

Bottom Line

Before you set off to the dealerships, you should do thorough research to find the cheapest car to lease with no money down in your locality. All the ten special deals in this guide will enable you to get an affordable lease deal at less than $99 per month. However, the $99 special lease deals come with terms and conditions that you may need to fulfill before you can walk away with the vehicle.

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