Best Lease Deals With No Money Down [November 2023 Edition]

What is a Zero Down Lease?

A zero-down lease is a car leasing agreement where you start the lease without making an initial down payment. This means you don't pay any upfront costs except for taxes and fees when you sign the lease.

It's a convenient option for those looking to drive a new car without the burden of a hefty initial expense. Overall, a no-money down lease can allow for easier budgeting and immediate enjoyment of your new vehicle.

However, note that monthly payments will be higher since you are not reducing the lease amount via a downpayment.

You will also still have to pay lease fees, including:

• Taxes and Fees: You might need to pay taxes, registration, and licensing fees at the start of the lease.
• Acquisition Fee: A charge by the leasing company for processing the lease.
• Disposition Fee: A fee charged at the end of the lease if you don't purchase the car.
• Excess Wear and Tear Charges: Costs for any damage beyond normal use.
• Mileage Overages: Additional charges if you exceed the mileage limit specified in your lease contract.

What to Know About Leasing a Car

Leasing a car may be better than buying one if you prefer to change your vehicle every few years. It’s an affordable way to get new cars without worrying about service issues.

However, there are a few helpful terms to know about leading a car:

• MSRP: The Manufacturer’s Suggested Retail Price for buying a new car.
• Sale Price: How much you pay (in total)for the leased vehicle. The higher this price, the higher your monthly payments.
• Money factor: The interest amount for your lease, which is highly influenced by your credit score.
• Residual value: How much the vehicle is worth after your lease. This value is what you would pay if you want to buy the car when your lease ends.
• Down payment: How much money you put down when signing the lease. A higher down payment can lower your monthly payments.

The great news is that you can negotiate all of these values aside from MSRP.

Steps for Leasing a Car

Leasing a car can be a simple process. Here’s how it works:

• Determine your budget, including your monthly budget.
• Research car makes and models to determine which one you are interested in.
• Evaluate how many miles you drive per year, as most leases set a limit of around 12,000.
• Negotiate your lease terms
• Finalize your lease and drive off with your new car

Sign and Drive Lease Deals

Made popular by Volkswagen, sign and drive leases usually involve no out-of-pocket expenses at closing.  The dealer will roll all costs into your monthly payment so that you do not pay anything that day.  You literally sign the paperwork and then drive off the lot with your new car.

Are sign and drive lease deals the same as zero down? Sign and drive is just one type of zero down offer.  While sign and drive typically means nothing is due upfront, some zero down deals have costs at closing like a deposit of the first month’s payment and fees.

How to Negotiate the Best Car Lease Deal

Negotiating is vital for getting a quality lease deal, including a zero-down lease if that’s what you’re after. Here are the steps I use to negotiate the best car lease deal:

1. Research Market Prices: Before negotiations, research the current market prices of the cars you're interested in. Know the MSRP (Manufacturer's Suggested Retail Price) and the average lease prices in your area.
2. Know Your Credit Score: A higher credit score can secure better lease terms. Understand where you stand credit-wise.
3. Compare Deals: Check various dealerships and online platforms for lease deals. Don’t settle on the first offer.
4. Negotiate the Car Price First: Focus on lowering the car’s sale price before discussing the lease terms. A lower sale price leads to lower lease payments.
5. Limit Additional Costs: Negotiate to reduce or eliminate fees like acquisition, disposition, and documentation fees.
6. Evaluate Total Costs: Consider the total cost of the lease, including all fees and monthly payments, over the lease term.
7. Be Ready to Walk Away: Don’t hesitate to walk away if the deal doesn't meet your expectations. Often, dealers will present a better offer to close the sale.

Zero Down Lease Deals with Bad Credit

If you have bad credit with a credit score below 620 you will likely have a hard time getting a car lease from a dealership, much less one without a down payment.

However, you still have options.

There are a few companies that work with dealerships that specialize in subprime lending. This means that you can buy a new car, even if you have a 500 credit score.  Typically, these companies will speak with you about your vehicle preferences and then connect you with local dealers willing to offer loans to customers with poor credit, often with no upfront payment.

If you have bad credit, check out our partner, Auto Credit Express, who has one of the largest networks of car dealerships across the United States.

Zero Down Lease Deals on Trucks

Manufacturers do not advertise zero down deals on trucks as frequently as cars.  Perhaps because trucks are in high demand and one of the fastest growing classes of vehicles.

But don’t fret.  Regardless of whether deals are advertised, you can often negotiate a zero down deal on either a car or truck.  And there are plenty of other lease deals on trucks available.