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Paying interest can quickly dampen the excitement of buying a new car. It’s like staying in a nice hotel, turning off the lights, and then hearing an army of roaches skitter across the floor.

Interest on a $25,000 car could easily cost you an extra $3,000 over 5 years.

But not to worry, many car manufacturers are offering interest-free loans for up to 84 months. That means you’ll save up to $3,000 just by choosing one of these deals instead of the typical car loan.

Let’s take a look at this month’s best 0% APR deals and how these loans work.

Best 0% APR Financing Deals Right Now (across all vehicle types)

Here are our picks for the best APR deals for the month of June. Some include bonus cash offers as well.

#1 Deal: 2021 Nissan Murano

Finance Deal: 0.0% APR for 60 months plus $2,500 in bonus cash

Check Murano Prices

#2 Deal: 2020 Ford Expedition

Finance Deal: 0.0% APR for 72 months plus $1,250 in bonus cash

Check Expedition Prices

#3 Deal: 2021 Dodge Durango

Finance Deal: 0.0% APR for 48 months plus $1,250 in bonus cash 

Check Durango Prices

#4 Deal: 2021 Jeep Grand Cherokee

Finance Deal: 0.0% APR for 36 months plus $1,750 in bonus cash

Check Grand Cherokee Prices

#5 Deal: 2021 RAM 1500

Finance Deal: 0.0% APR for 48 months plus $1,000 in bonus cash

Check RAM 1500 Prices

#6 Deal: 2020 Nissan Frontier

Finance Deal: 0.0% APR for 60 months plus $1,500 in bonus cash

Check Nissan Frontier Prices

#7 Deal: 2021 Nissan Leaf

Finance Deal: 0.0% APR for 72 months plus $6,000 in bonus cash

Check Leaf Prices

#8 Deal: 2021 Infiniti Q60

Finance Deal: 0.0% APR for 72 months

Check Q60 Prices

#9 Deal: 2021 Volkswagen Jetta

Finance Deal: 0.0% APR for 60 months 

Check Jetta Prices

#10 Deal: 2021 Hyundai Sonata Hybrid

Finance Deal: 0.0% APR for 60 months plus $1,000 in bonus cash

Check Sonata Hybrid Prices

Our Top Pick in Each Vehicle Class & Category

What Does 0% APR Mean When Buying a Car?

0 APR or zero percent financing means you pay no interest on your monthly auto loan payments which can add up to thousands of dollars saved.

When you get a car loan from a dealership or lender, they make their money by charging you interest and loan fees.  These fees are factored into your monthly payment and spread out across the life of the loan.

The annual percentage rate (APR) is the percent of all your payments over a year that goes towards interest and fees.  The higher the APR, the higher your monthly payment.

If a dealership offers a promotional 0% APR loan, they are waiving their loan fees and interest as an incentive to get you to buy a car. 100% of every payment you make will be applied to your loan principal.

Is 0% APR Worth It?

0% APR financing can save you a lot of money on your car purchase since you're not paying any interest on the car loan. The average price of a car is around $36,000 and with 0% financing over 60 months, monthly payments come out to around $600. If we applied the average APR of 4.96%, the monthly payment on the vehicle rises to $678 a month, or $4,700 in interest payments over 60 months.

Is 0% a good deal?

0% APR offers can save you thousands of dollars in interest payments over the life of the car loan, but you should be wary of the reason the dealer is offering them. If you read the fine print, you'll realize that most zero APR offers will require you to be a well-qualified buyer with excellent credit and you cannot combine with other offers.

What's the catch with zero percent car loans?

While 0% APR loans can be a good deal, there’s also a catch to consider. Once the dealer gets you in the door with the zero APR loan offer, you may find that it’s more of a bait-and-switch, with the offer only applying to very specific models and packages that have limited stock available.

Dealerships can offer zero interest car loans because they make money on the sale in other ways, like a higher car price, or add-ons in the Finance Office with things like gap insurance or extended warranties. And sometimes the catch is that the low APR may only apply up to a certain amount requiring you to make a bigger down payment else pay a higher APR for anything above the limit.

Additionally, you can often only choose either 0 APR OR cashback, not both. Learn more about choosing between low APR or cashback.

Can you Get Zero Percent Financing on Used Cars?

0 APR used car deals are rare, but not unheard of.  Typically, this type of incentive is only offered on new cars.  One exception is Volkswagen, which has been running 0% APR financing for 60 months on their CPO (certified pre-owned) during the COVID crisis.

Occasionally, a dealership will advertise a no-interest deal on a used vehicle, but these are very hard to find.  A better approach to is focus on negotiating the sales price of the used car you want and then get competitive financing from a bank or credit union.

How to Get a 0% APR Car Loan

In most cases, low APR loans have strict requirements that can be difficult to meet. Typically, you’ll need to have excellent credit, but you must look carefully at the advertised deals to know what the qualifications are.

What credit score do you need to get 0% financing?

Lenders rarely advertise the minimum credit score to be eligible for 0% financing. However, you'll typically need at least a 700 credit score and a score above 720 will give you a better chance of being approved.

Monitor monthly incentives

Part of getting an appealing low APR car loan is to carefully monitor monthly incentives. Most manufacturers change their offers at the beginning of every month with incentives on different models.

Bookmark this page to check for the monthly updated deals, or sign up for the Car Deals Early access list at the footer of this page to get notified by email.

All 0% Finance Deals for June 2021

Below is a list of all the current 0% APR deals offered by each manufacturer right now.

These offers may vary based on location, credit score, and financing terms and are not guaranteed.  So use my free service to Check Discount Car Prices to get the best prices that include current manufacturer offers and incentives.

Frequently Asked Questions

What car dealers are offering zero-percent financing?

Buick, Chevy, Hyundai, Nissan, and more.

Can you get both 0 APR and no money down?

While it would be ideal to get both, typically you cannot get both 0 APR and no money down. Most times, you will only be able to get one or the other, and it would be highly unusual for you to find them both available together.

Is there a catch to 0% APR car deals?

Sometimes APR deals are tied to buying a car at a non-negotiable price or have a short loan term like 24 or 36 months.  But if you look closely, sometimes you can find good deals without a catch.

Is a 72-month car loan bad?

72 and 84-month loans are worse than shorter loans.  The longer the loan term, the more you’ll end up paying in interest over the life of the loan.  However, if you have 0% APR, a longer loan can be good because you’re not paying any interest at all.

What does 0 APR for 60 months mean?

Zero APR means you pay 0% interest on your car loan.  60 months is the duration of the loan (and the total number of monthly payments).

Is it better to finance a car through a bank or the dealership?

You can get a loan through dealer financing or through your bank or credit union.  Go with whoever offers you the best lending terms unless getting a loan is tied to a discount on the price of a car. Learn more about financing through a bank or dealership.

Does 0% APR hurt your credit?

No, it’s just the interest rate on an auto loan and doesn’t have anything to do with your credit.

Frequently Asked Questions

Are there any car leases with no money down?

Yes, manufacturers are offering a variety of zero down lease deals right now. And sometimes you can negotiate zero down for other models if you have good credit.

Who is offering leases with zero down payment?

Many popular manufacturers like Honda, Hyundai, and Nissan periodically offer lease deals with no down payment required. Manufacturers consistently release deals each month that have zero or very low due at signing amounts.

How do I lease a car for zero down?

Lease terms are typically negotiable so you can sometimes ask a car dealer to transfer your down payment into higher monthly payments.  Learn more about how to negotiate a lease.

Should I put a down payment on a lease?

One of the main advantages of leasing is the low up-front costs, but keep in mind that a zero down lease will raise your monthly payment since you are not pre-paying some of the lease obligation.

What is 'due at signing' on a lease?

The due at signing amount typically consists of the first month’s payment, security deposit, acquisition fee, and any state taxes. It’s important to read the details before leasing, even with advertised $0 down there may be applicable taxes and fees. Learn how zero down leases work.

What credit score do I need for a zero down deal?

With some exceptions, the typical minimum credit score to lease a car is 620. However, unless your credit score is over 680, you will not qualify for a zero down deal.

How much should I put down on a lease?

When leasing a car, the dealer or manufacturer may set a predetermined due at signing amount. There isn't much leeway on what you can put down on a lease, so expect to pay that amount. You can learn more about how much money to put down on a car here. However, if you have very good credit and make enough annually, you may be able to negotiate a zero down lease deal with higher monthly payments.

One of the benefits of leasing compared to buying a new car is the low up-front cost. But today we're going to look at the lowest of the low.

We take into account the monthly payment and the amount due at signing in order to pick our favorites. There are plenty of offers from popular car manufacturers that advertise low monthly payments, but the "due at signing" amount is usually higher.

When the down payment on the vehicle is higher, the monthly payment amount usually gets smaller. So our picks for the cheapest lease deals are all affordable options that balance the total cost of the new vehicle.

Want more affordable lease deals? Our team scours the web every month to find all types of lease deals across all brands and vehicle types.

Cheapest Lease Deals Right Now

To get the most bang-for-your-buck, check out our top picks for the most inexpensive cars to lease right now.

Cheapest Car to Lease

So what is the cheapest car to lease? Out of all these low-priced cars, we selected the 2021 Nissan Leaf

Top Pick: 2021 Nissan Leaf
Lease Deal: $199/month for 36 months, $1,149 due at signing

Check Nissan Leaf Prices

Factors That Determine the Cost of a Vehicle Lease

The factors used to determine your monthly lease payments are:

• Depreciation. You pay for the amount of depreciation the vehicle will experience over the lease term. Therefore, cars that depreciate faster will cost more to lease per month but will be less expensive to buy after the lease.
• Rent charges. Rent charges (based on the money factor) are like the interest rate on an auto loan.
• Taxes and fees.
• Lease term. The length of the lease contract will also impact the cost of your lease.

You’ll also need to pay for comprehensive, collision, and liability auto insurance while leasing a vehicle. You may have to pay for routine maintenance and repairs depending on your lease agreement. When turning the vehicle back in, you could face end-of-lease fees for excessive mileage, excessive wear and tear, disposition, or early termination fees.

The Average Cost of a Car Lease

The actual cost to lease a vehicle will significantly fluctuate based on the factors above. However, the average lease payment for a new vehicle is $467 per month. The average monthly loan payment for a new car is $568, so the average cost to lease a car is $100 cheaper per month than financing a car through a loan.

Why Find a Cheap Lease?

While there are many advantages to leasing a car, ultimately you are renting the vehicle. Unlike a car loan, you are not paying to own the car. Unless you take the buyout option, you are merely paying to use the vehicle for the lease term. You cannot get the money you put into a lease back and for that reason, it’s wise to keep the cost of your lease down as much as possible. Fortunately, there are many excellent affordable car leasing deals available, and it is very doable to find a high-quality lease that doesn’t break the bank.

What to Look for in Cheap Lease

It’s not just about the monthly payment amount that makes it a cheap lease deal. A high due at signing amount will lower your monthly payments and a low due at signing amount will increase your monthly payments. You should find a nice balance between the two for it to be considered a cheap lease. There are plenty of advertised lease offers that have monthly payments around $250 with due at signing amounts at around $2,000.

Frequently Asked Questions

What is the cheapest car to lease right now?

There are many lease deals on new cars that have a sticker price near or under $20,000. Some of the cheapest and most popular models with lease specials are the 2020 Honda Civic ($20,000) and the 2020 Subaru Impreza ($18,695).

What is the cheapest and most reliable car?

The 2020 Honda Civic ($20,000) and 2020 Hyundai Elantra ($19,300) are a couple of the cheapest and most reliable cars. There are usually great lease deals on many other good-value and reliable cars.

What is the cheapest monthly payment for a new car?

The cheapest monthly payment for a new car can be as low as $120 per month. Some new cars like the Nissan Leaf and Hyundai Elantra have monthly payments just above $100 per month.

What is the cheapest down payment for a new car?

Car manufacturers frequently publish lease deals that advertise no money down. There may be taxes and other fees due at signing, but the cheapest down payment for a new car can be as low as $0.

How can I get a cheap car lease deal?

It’s a good idea to get multiple dealerships to compete in order to find the lowest price available. Before reaching out to dealerships for quotes, check out our top picks for the cheapest lease deals available right now. 

Many manufacturers are offering lease deals and incentives this month on 2020 and 2021 models for all different types of vehicles.

Let's break down these offers by category and highlight some of the best lease deals right now.

Best Lease Deals Right Now (across all vehicle types)

Here's our picks for the best vehicle lease deals for the month of June.

#1 Deal: 2021 Toyota Corolla

Lease Deal: $169/month for 36 months, $2,999 due at signing

Check Corolla Prices

#2 Deal: 2021 Nissan Leaf

Lease Deal: $199/month for 36 months, $1,149 due at signing

Check Leaf Prices

#3 Deal: 2021 Ford Ranger

Lease Deal: $262/month for 36 months, $2,889 due at signing

Check Ranger Prices

#4 Deal: 2021 RAM 1500

Lease Deal: $299/month for 36 months, $3,899 due at signing

Check RAM 1500 Prices

#5 Deal: 2021 Ford Bronco

Lease Deal: $286/month for 48 months, $3,286 due at signing

Check Ford Bronco Prices

#6 Deal: 2021 Subaru Crosstrek

Lease Deal: $229/month for 36 months, $2,429 due at signing

Check Crosstrek Prices

#7 Deal: 2021 Infiniti Q50

Lease Deal: $389/month for 39 months, $3,599 due at signing

Check Q50 Prices

#8 Deal: 2021 BMW X3

Lease Deal: $419/month for 36 months, $5,399 due at signing

Check X3 Prices

#9 Deal: 2022 Honda Odyssey

Lease Deal: $369/month for 36 months, $3,299 due at signing

Check Odyssey Prices

#10 Deal: 2020 Hyundai IONIQ Hybrid

Lease Deal: $179/month for 36 months, $999 due at signing

Check IONIQ Hybrid Prices

Our Top Pick in Each Vehicle Class & Category

Best Lease Deals (Video)

Frequently Asked Questions

Can you lease without a down payment?

Yes, some car brands advertise zero down leases.  Here’s the full list of zero down offers right now.

Even if it’s not advertised, some dealers make the down payment optional if you meet their credit requirements.  Keep in mind that a zero down lease will raise your monthly payment since you are not pre-paying some of the lease obligation.

Is it cheaper to buy or lease a car?

Monthly payments are cheaper when leasing a car.  But if you buy and keep a car after it’s paid off, it’s cheaper in the long run. Here are some of the cheapest lease offers with monthly payments under $200.

Does leasing a car build credit?

Yes, leasing a car builds credits in the same way that buying a car does.  You just need to show a history of paying in full and on time.

What credit score do I need to lease a car?

With some exceptions, the typical minimum credit score to lease a car is 620. However, unless your credit score is over 680, you will not qualify for the best lease deals.

What is capitalized cost in a car lease?

Capitalized cost is the total amount being financed with a lease.  This is the price of the vehicle and all associated fees, minus whatever you pay in cash for your down payment and your trade-in.

What is the money factor in a car lease?

The money factor is the financing rate on a lease, similar to interest paid on a loan, but expressed a little differently.  The lower the money factor, the less your monthly payment will be.

Is it better to buy or lease a car?

Leasing a car does result in lower monthly car payments.  But for most car buyers, it makes more financial sense to buy a car outright than to lease.  The exceptions are if you are deducting the car as a business expense or you want to replace your car every 2-3 years.  Learn more about the reasons to buy or lease a car.

Why do dealers want you to lease?

Dealers love to offer leases because they will make more profit than a typical car sale.  And consumers are less likely to negotiate a lease due to seemingly low payments and confusing financial terms like money factor and capitalized cost.

GM manufacturers including Chevrolet, Buick, GMC, and Volvo all offer discounts to teachers and educators. The discounts can be as high as $5,500, but cash back amounts vary from vehicle to vehicle. Volvo started offering teacher incentives for 2021.

These deals apply to select new 2020 or newer vehicles, ranging from SUVs, sedans, pickup trucks and cargo vans. Educators can apply this discount to a purchase or lease and they can be combined with most other current incentives.

Let's take a closer look at how to qualify and the requirements for each of these teacher savings programs. At the bottom we also list all the current discounts for educators offered by each manufacturer.

How to Qualify for a Teacher Discount

To qualify for a teacher car discount you have to either work in the educational field or have a parent that does.

GM offers the Educator Discount to a wide range of members of a public or private school, university, or college. This includes:

• Educators
• Administrators
• Faculty
• Support Staff

You can also share this special offer with your spouse and dependent children. A dependent child qualifies as:

• Under 21 years of age
• Full-time student under 25 years of age

What to Bring to the Dealership

Before heading to your local authorized dealership, GM requires an authorization number which can be obtained through their site. Once you have an authorization number, you must bring the code and these other documents as proof of eligibility:

• Copy of school ID/badge
• Copy of current pay stub (within last 30 days)
• Copy of driver’s license

As an educator, you can purchase or lease up to two new vehicles per year with the GM Educator Discount.

Best Discounts for Teachers & Faculty

Below are some of the best car deals for teachers, administrators, faculty, and support staff.

These offers may vary based on location, credit score, and financing terms and are not guaranteed.  So use my free service to Check Discount Car Prices to get the best prices that include current manufacturer offers and incentives.

Frequently Asked Questions

What car companies give teacher discounts?

All the GM family of car brands offer discounts.  That includes Chevy, Buick, GMC.

How much is a teacher discount?

Discounts range from $1,500 to as high as $5,500 depending on the brand.

How long must you be a teacher to qualify?

Length of employment does not matter as long as you can prove you're currently a teacher or faculty and can show a pay stub.

Do family members get the teacher discount?

Spouses and dependent children both qualify for the discount.

Does Honda, Toyota, or Nissan have teacher discounts?

None of these brands currently offer discounts at the national level.  Although some dealerships may occasionally run local promotions.

Almost all major car manufacturers are offering payment relief programs during the COVID-19 pandemic. They are offered in the form of deferred payments on new vehicles, payment extensions, and lease extensions. Many will also waive any late fees for an extended period of time. (these are discounts for everyone, not to mention those discounts for first responders)

If your local and state government have deemed transportation as an essential need, most dealer service operations for repair and maintenance should be open.

Tip: To truly get a good deal, you’ll want to get prices from several dealerships. (click the orange button above and Get Prices).

Below we will give an overview of each car manufacturer's Coronavirus payment relief program, available to new and current customers.

Acura COVID-19 Hardship Help

Current Customers: The Hardship Help program for current Acura Financial Services account holders can get payment extensions, deferrals, and late fee waivers.

Prospective Customers: A 90-day deferred payment program is available to new and used car buyers. A Loyalty Purchase Assistance Cash deal of $500 is available on any new Acura model.  Acura is currently offering first responders and healthcare professionals up to $750 off a purchase or lease on any 2020 or newer model. You can also buy an Acura online through their "Precision Purchase" program.

Audi COVID-19 Assistance

Current Customers: Audi's Financial Services are open and accessible to customers that need financial assistance.

Prospective Customers: Audi is waiving the first monthly payment (up to $750 value) for new customers.

BMW Coronavirus Response

Current Customers: BMW's Customer and Financial Services are available to customers that need assistance due to the COVID-19 pandemic. Customers may be eligible for a modified payment plan.

GM (Buick, Cadillac, Chevrolet, GMC) Coronavirus Response

Current Customers: GM Financial customers (Buick, Cadillac, Chevrolet, and GMC) that are affected by COVID-19 are encouraged to message through the mobile app or contact 1-800-284-2271 for assistance. Current owners have OnStar Crisis Assist services for a limited time and complimentary in-vehicle data for Wi-Fi equipped vehicles; 3GB or three months, whichever comes first. GM is offering customers the ability to shop online and take delivery at home from a participating dealership.

Prospective Customers: Through GM’s “Shop. Click. Drive” Program, you can shop and arrange the car purchase online. Some dealers also offer to deliver the vehicle to your home.

Fiat-Chrysler (Chrysler, Dodge, Jeep, RAM) COVID-19 Response

Current Customers: There are flexible payment options and payment extensions available to current Chrysler, Dodge, and Jeep customers on a case-by-case basis.

Prospective Customers: There may be options to defer payments for 90 days on select models if financed through Chrysler Capital or Ally Financial.

Ford Motor Company (Ford, Lincoln) COVID-19 Assistance Program

Current Customers: Ford and Lincoln customers are encouraged to call Ford Credit to discuss options if they are going through financial hardship. The special hotline number is 1-800-723-4016

Prospective Customers: Ford is now offering remote shopping tools to customers at participating Ford dealers. Some may even offer delivery options.

Ford Promise Vehicle Return Program

The Ford Promise program allows customers to return a vehicle within one year of purchase if they experience financial hardship due to involuntary loss of employment. The Ford vehicle buy-back program will cover:

• 2019/2020/2021 new, used, or CPO vehicles that have been leased or purchased through Ford Motor Credit between June 26^th, 2020 and September 30^th, 2020.
• Up to $15,000 waived/paid with the customer responsible for the remaining balance

To qualify, customers must have been approved for state unemployment benefits and must notify the Claims Administrator within thirty days of involuntary job loss. Customers experiencing self-employed personal bankruptcy are also eligible for Ford Promise.

Honda COVID-19 Hardship Help

Current Customers: Payment extensions, deferrals, and late fee waivers are available through Honda's Hardship Help program.

Prospective Customers: New customers can defer payments for 90 days on the purchase or lease of select new models. Honda is now offering up to $500 off a purchase or lease of a new vehicle to healthcare professionals.

Hyundai Coronavirus Relief Program

Current Customers: Current Hyundai customer can defer payments for up to three months if they lose their job or face medically-related hardships before December 31st, 2020. The Hyundai Assurance Job Loss Protection program will waive up to six months of payments for new owners who have lost their job that purchased or leased a vehicle before December 31st, 2020. Hyundai will also extend any qualifying warranty that ends between March and June 2020 until June 30th, 2020.

Prospective Customers: Customers have the option to delay payments for 120 days. Hyundai also offers the ability to purchase a new vehicle online and some dealers will deliver the vehicle to your home. The "Clean Assurance" program promotes new safety guidelines for Hyundai dealerships.

Infiniti COVID-19 Response Program

Current Customers: Infiniti customers that are going through financial hardship are encouraged to call or email Infiniti Financial Services to discuss payment alternatives.

Prospective Customers: Infiniti is now offering no payments for up to 90 days on a purchase or lease on any 2020 model. New customers can get 0% APR financing for 72 months on all 2020 models.

Jaguar COVID-19 Response

Current Customers: Returning Jaguar lessees can get their first two payments of up to $750 waived if financed through Jaguar Financial Group. Jaguar is also offering its lessees the option to extend their lease agreement for up to 6 months.

Prospective Customers: The Jaguar Deferment Program allows eligible customers to defer their payments for up to 90 days. This can be applied to all new 2020 models.

Kia Coronavirus Response Program

Current Customers: Kia customers should check with local dealers for special payment assistance options. Some dealers have special concierge services and loaner vehicle programs to assist you.

Prospective Customers: New buyers may have the ability to complete their purchase online.

Land Rover COVID-19 Response

Current Customers: Returning Land Rover lessees can get their first two payments of up to $750 waived if financed through Land Rover Financial Group. Land Rover is also offering its lessees the option to extend their lease agreement for up to 6 months.

Prospective Customers: The Land Rover Payment Deferment Program allows eligible customers to defer their payments for up to 90 days.

Lexus COVID-19 Assistance Program

Current Customers: Lexus customers going through financial hardship due to the global pandemic are encouraged to call Lexus Financial Services at 800-874-7050 to discuss payment relief options.

Mazda COVID-19 Response Program

Current Customers: Mazda is encouraging its customers to contact Mazda Capital Services for any financial relief. Current Mazda owners can get up to $1,500 off when they purchase or lease any new Mazda.

Prospective Customers: New customers can get 0% APR on most models and Mazda is offering a 90-day deferred payment program.

Mercedes-Benz COVID-19 Response

Current Customers: Customers are encouraged to call Mercedes-Benz Financial Services at 800-654-6222 for any financial assistance related to the Coronavirus pandemic.

Mitsubishi COVID-19 Financial Support

Current Customers: Mitsubishi customers who financed through Ally can contact them to defer payments for up to 120 days.

Prospective Customers: New buyers can finance a new vehicle through Ally and defer payments for up to 90 days.

Nissan Coronavirus Assistance Program

Current Customers: Nissan and NMAC Customer Service are available at 1-800-456-6622 to assist customers and discuss payment arrangements.

Prospective Customers: Nissan is offering new customers the option to defer monthly payments for up to 90 days. The manufacturer will also cover payments for up to two additional months.

Porsche COVID-19 Response

Current Customers: Impacted Porsche customers are encouraged to send a secure message through their PFS Account for financial assistance.

Subaru COVID-19 Response Program

Current Customers: Current Subaru lessees can extend their lease agreements for up to 6 months.

Prospective Customers: New Subaru customers can get 0% APR for 63 months on 2020 Ascent, Forester, Outback, Legacy, and Impreza models. Buyers also have the option to defer payments for up to 90 days.

Toyota COVID-19 Response Program

Current Customers: Toyota Financial Services is offering payment relief options to customers who are affected by COVID-19. Qualified lease and finance customers can get payment extensions or lease deferred payments. They are also offering assistance to customers who are nearing the end of their lease period.

Prospective Customers: Toyota will also defer payments for up to 90 days. Every new Toyota will come with ToyotaCare, which is a no-cost maintenance plan for 2 years or 25,000 miles.

Volkswagen COVID-19 Response

Current Customers: Volkswagen customers are encouraged to visit the Volkswagen Credit website if they are impacted by COVID-19. Existing customers can defer their payments for up to 90 days without fees.

Prospective Customers: Most new VW models come with 0% APR for 72 months and there is also an option to defer the first month's payment for 120 days. Eligible customers who lost their job due to economic reasons can get up to 6 months of payments (of up to $750 per month) waived.

Volvo COVID-19 Response

Current Customers: Customers going through financial hardship are encouraged to call Volvo Car Financial Services to discuss payment relief options.

These offers may vary based on location, credit score, and financing terms and are not guaranteed. So use my free service to Check Discount Car Prices to get the best prices that include current manufacturer offers and incentives.

Leasing a new car requires a far smaller up-front investment than purchasing one. However, most leases still require you to put down money upfront....unless you know what you're doing.

So do zero down leases exist?  Yes, they really do.

The trick is that even leases not advertised as "zero down" can become zero down with some negotiation.

This guide will breakdown how zero down leases work and how you can negotiate a new car lease to avoid putting money down up front.

Looking for Deals? Here's our picks for the best zero down lease deals this June.

How Does a 0 Down Lease Work?

With a no money down lease, you skip the down payment and roll it into your monthly lease payments.  In some cases you can defer all upfront costs, but fees like registration and your first month's payment may be due at signing.  More on that later.

But let's start by looking at some leasing terminology.

Key Leasing Terms

• Capitalized Cost: Capitalized cost (or cap cost) is the sales price of a car being leased. It includes the car's negotiated price plus any additional costs that will be financed through the lease.  The lower the cap cost, the lower your monthly payments.
• Capitalized Cost Reduction: This is similar to a down payment that reduces the vehicle sales price. The cap cost is reduced by any upfront cash you pay at closing plus the value of your trade-in.
• Lease Term: This is the number of months during which you will have use of the vehicle and will pay an agreed upon monthly payment.
• Residual Value: The residual value of the car is the amount you would pay the leasing company if you decided to buy the car at the end of the lease.
• Depreciation: The reduction in a car's value from the beginning to the end of the lease term.  This is calculated as the difference between the cap cost (minus cap cost reduction) and the residual value.
• Money Factor: This is the rate at which you are borrowing money.  It's the lease equivalent of the annual percentage rate (APR) when buying a car with a loan.

When leasing a car, the more you pay upfront, the lower you pay in monthly payments.  The opposite holds true as well.  The less you pay upfront, the more you pay in monthly payments.

By opting for a zero down lease, most or all of your upfront payment (cap cost reduction) is rolled into your monthly payments.

Keep in mind that a 0 down lease does not always mean that you can waltz in empty-handed and drive off in a new leased car. Even with a no money down lease, you sometimes still have to pay for the sales tax, dealership fees, and the first month’s payment. However, it is possible to roll the document and dealer fees into your monthly payment.  More on the types of zero down leases below.

Benefits of a No Money Down Lease

So why put zero down on a lease? This type of lease structure is appealing because...

• Less money upfront. Signing a lease with a down payment means that you must fork over cash right off the bat. With a no money down lease, you get to spread the down payment out, so there’s less out-of-pocket cost at the beginning.
• Sales tax is deferred. Typically, you must pay an upfront sales tax when you lease a car with a down payment. For a no money down lease, you will end up paying the same amount in taxes but spread out over time.
• Less risk.  If the vehicle is stolen or totaled during the lease period, you will not lose out on the down payment that you made.

Drawbacks of a No Money Down Lease

There are also some downsides to zero down leases.

• Higher monthly payments. Because you are deferring up front cost, your monthly payments will be higher.
• Higher total cost. You must pay interest on the leased amount, which means you will likely end up paying more in total costs over your entire lease term if you put no money down.

Down Payment and Amount Due at Signing May Differ

Your down payment is not the only potential cost when you sign your lease agreement. There are also:

• city/county/state fees
• license and registration fees
• the first month’s payment
• security deposit
• and in most states when a down payment is made, there is an upfront sales tax required

There are big differences in what you pay upfront, so let's take a closer look.

Types of No Money Down Car Leases

There are four primary types of zero-down leases. These are:

• $0 due at signing/ sign and drive. These leases will involve no out-of-pocket expenses when you sign the lease. The car dealer will include the cash due amount into the monthly cost of your lease so that you do not pay anything that day.
• No cap cost reduction. This kind of lease eliminates the down payment, but still includes the first month’s payment and fees.
• No cap cost reduction and no first month’s payment. Most often, you must pay for the first month up front, however, there are some leases that eliminate this requirement. Instead, the dealer will roll your first month’s payment and down payment into the monthly cost, and you will only have to pay fees required by your state at the time of signing.
• No down payment and dealer pays the first month. In rare cases, the dealer or lessor will cover the first month’s payment. You will not have to make a down payment, and the dealer will waive the first month’s payment so that you only have to pay the official fees.

Is a zero down lease the same as a one-pay lease?

No, a one-pay lease is the opposite of a zero down lease.  Instead you combine all the payments and make them up front in a single payment to save on interest.

Requirements to Qualify for a $0 Down Lease

Even though dealers and manufacturers promote zero down leases, only certain customers qualify.  Your credit score is the key factor determining whether or not you qualify for a $0 down lease deal. Most lenders will require you to be a "well-qualified customer", meaning you must have a high credit score, over 680. Having your credit score at hand will help you know if you qualify for a $0 down lease. Those with poor credit can also consider getting a cosigner that has a better chance of qualifying.

In other cases, you may need a sufficient debt-to-income ratio to cover the expected monthly payments. Manufacturers have different requirements for a debt-to-income ratio, but even with good credit, some may require a fairly high annual income to give you a zero down lease.

How Can You Get a Zero Down Lease?

Here’s how to lease a car for no money down.

Look for Published 0 Down Lease Deals

The first option is to search for advertised 0 down lease deals. Dealerships and manufacturers will usually publish zero down lease deals at the beginning of each month, so your best bet is to look around for those specials. Check out this month’s 0 down lease deals here.

How to Negotiate a Zero Down Lease

The majority of car leases are advertised with a down payment, but yes, you can negotiate a lease to become zero down.

Once you find a good advertised lease deal, the trick is too simply ask the dealer if they will allow it.  If you have a good credit score many will accommodate, especially since you'll be paying more interest over the lease term.

Now if the car you want doesn't have a good lease offer, negotiate the sale price first and the down payment last.

You'll get the best deal by getting prices from several dealers and then negotiating over email.  Don't tell the dealer you will be leasing up front.  After you agree on a good car price, ask the dealer to use that as the capitalized cost of a lease.  Then ask if you can roll the down payment into your monthly payments and voila....you've got your zero down lease!

Frequently Asked Questions

How do you negotiate a 0 down car lease?

Negotiating a car lease may be intimidating, but it is crucial for getting the best deal. It’s best to look for new deals each month and then have multiple dealerships compete in order to get the best price.

What does 0 due at signing mean?

0 due at signing means you will not have any out-of-pocket expense on the day you sign the lease. The cash-due fees are rolled into your overall lease cost, which means you will have a higher monthly payment.

Are lease down payments negotiable?

Lease terms are negotiable, and you can usually negotiate the down payment and total money down. With a solid credit score you may be able to drive away without putting any money down.

What credit score is needed to lease a car with no money down?

A good, strong credit score will help you qualify for a lease with no money down. Typically, we recommend a credit score of 680 or above.

How much should you put down on a lease?

There is not a set amount that you should put down on a lease. Your personal finances and preference will play a role. Keep in mind that putting more down will help reduce your monthly payments and the amount of interest you pay, but it is a larger out-of-pocket expense that you cannot get back.

How much does down payment affect lease payment?

The payment amount varies by lease terms like the money factor.  Just ask your salesman to give you lease quotes with and without a down payment so you can see the difference.

Can you lease a car with bad credit and no money down?

It is highly unlikely you’ll be able to skip the down payment if you have bad credit.  In fact, if you find a leasing company that offers bad credit leases, you’ll likely be required to pay additional cash upfront.