Dealer coming back with first payment down when I request zero down

Multiple dealers are coming back to me with putting the first payment as down payment, when I tell them I want ZERO down. Multiple dealers have done this. Any reason to this?

There is a difference between zero down and zero drive off. Zero down means that you are not putting any cash down toward cap cost reduction. But dealer assumes you will pay the first month and license/registration, etc.

Zero drive off = sign and drive with first month and fees rolled into the monthly payments.

Ah okay! I was intending zero drive off. Any pros/cons in doing so? MF being offered is .0001.

This is normal. Use this site to learn where every dollar goes in your payment and your down payment. Only focusing on X down and Y per month can lead to money lost on your end.

Thanks. I have been focusing on the following:

  • Selling price (obviously to get it as low as possible)
  • MF (trying to obtain the base rate)
  • Keep fees in the normal range
  • Avoid putting anything down at all unless I was really trying to get down to a certain payment

I think that’s all of it? FIrst time around using these tools to lease. Have lost a lot of money in the past I’m sure.

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Also make sure you take advantage of any MF reduction available for signing up for automatic payments and, if allowed by the manufacturer, Multiple Security Deposits (MSDs).

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With that money factor I’d go for rolling as much of the cost into the lease. Keep your capital available and accept slightly higher payments.

Also that way if for any reason the car is totaled you don’t have to pay the remaining fees.

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