1 time payment on a lease

hi guys,

I know you save a lot when you do the 1 time payment on the lease…but what are the negative impact when you do that?
will you lose the money when you got totaled?

No pull ahead (or at least no benefit to doing one)

On the lemon/total thing, I think it depends how the bank structures the one pay.

Only negative impact is that if you’re trying to build your credit it won’t really help. But it will help in the future if you keep your account in good standing and want another lease with the brand.

Most manufacturers (BMW for example) will give you a prorated refund if the lease ends early. They basically put the money into your financial services account and deduct it each month.

If you’re saving enough money or aren’t able to get approved for monthly payments it can be worth it.

You don’t always get a better deal with 1-pay.
BMW has less discount on MF with 1pay. Toyota has more.

Right, if you can do multiple security deposits you’ll save more money that way on a BMW lease. IMO the current programs aren’t really worth doing a single-pay lease since that money could be put to better use if it were placed in an investment account, unless you have to do one to get approved or the lease is only a few thousand dollars.

Toyota is better for one pay - get much higher discount with one pay and with some rates upto 6% is it a good chunk of money saved.

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I did a single-pay with BMW three years ago and it wiped out almost all the interest, the money factor was ridiculously low. If they offered that type of discount all the time I’d only do single-pay leases, but the current MF reduction isn’t enough to get excited about vs just paying it monthly, especially with MSD’s applied.

Yes, BMW offers lower discount with sone pay vs Max MSD. Toyota is the opposite.
With Toyota max MSD my payment was lower by approx $40. With one pay it would have been even more but dealership didn’t want to do OnePay.
By then 3 years ago I signed VW Jetta with $10 of interest in total over 3 year lease. Now same lease have much higher interest rate.

Thank you for the input