quick question couldn’t find a straight answer to…
is it generally best to do zero drive-off (fees rolled into lease)
or is it best to pay all the fees (license, reg, etc) and then 0 down on the vehicle?
I’m thinking first option is best but i’ve seen conflicting info…
if the second option is better, can you tell me why?
thnx
I am not sure why some folks prefer to pay the fees upfront, but I always go with Zero drive-off w/ all fees rolled into the lease. In most cases, I get out of my lease early so technically I pay less in fees.
I guess if the MF is high then you are paying interest on the fees which could be avoided if you paid it upfront. I think it is down to your personal circumstances, if you just got a bonus and want to reduce you monthly then paying them upfront would help.
That’s a good point. If you do a lease swap, then by 0 drive off, the fees are part of the monthly and the person assuming the lease helps pay for their prorated portion of the fees …
Or do a pull-ahead, or trade it in…
okay so looks like rolling fees into lease is the way to go!
whats generally considered a high money factor?
putting 3k down/driveoffs saves roughly $150 over the course of the lease depending on the car. it does vary. but it adjusts your cap so you don’t pay as much in interest.
but if you do pull-ahead/early returns etc etc it doesn’t matter
If MF is not too high, I like to roll in the fees just in case I get out of the lease early.
Downside is that not only do you pay interest, but you are also paying tax on these fees, which you normally don’t have to.
You also have the slight chance the vehicle gets totaled, and if you pay anything up front, that money is gone down the drain.
@Jon Hi Jon, I’m researching this topic so I apologize for reviving an old comment, but what is considered a not so high MF? .0006?
0 drive off any day any lease !
A mf of .0006 =1.44% interest on the lease. The money factor is determined by your credit and different makes ie bmw, Ford, Honda have different money programs. For example I know BMW but rate is .00156 normal you can get this information off Edmunds. I’m new but I think this is right.
Are you suggesting that that is considered low?
Who cares what the money factor is, at some point it comes down to the payment. If there is enough rebates, high residual, discount etc, it doesn’t really matter. The only money factor that always catches my attention is .00001, yes four zeros, that’s always a sign that the manufacturer is being aggressive, although it could be accompanied with a crap residual.