Do I Need to Put a Down Payment on a GMC Lease?
If you’re interested in a GMC lease, we encourage you to contact or visit our Dearborn, MI GMC finance center to work with our financing experts. Even drivers who’ve leased vehicles for years sometimes wonder if they’ll need to provide a down payment when they sign their contracts.
In general, qualified lessees don’t have to provide a down payment. Motorists with poor or no credit may have to put some money down, however. When you provide a down payment, it’s a show of good faith that you fully intend to live up to the requirements of your lease despite the implications of your credit score.
Should You Provide a Down Payment?
Motorists who want to lease a car from LaFontaine Buick GMC Dearborn typically ask if it’s wise to provide a down payment if they’re not required to do so. There’s no set answer to that question because it depends on various factors.
The sole benefit of offering a down payment upfront is that the money you’ll put down will lower your monthly lease payment. While that’s good news, your down payment will not lower the overall cost of your lease.
When you lease one of the latest GMC models like a GMC Sierra 1500, GMC Yukon, or GMC Terrain, all the interest charges are factored into your contract from the start. That means the cumulative cost of your lease is pre-determined ahead of time. Whether or not you make a down payment, the amount you’ll pay out by the end of your contract will remain the same.
Drivers who’ve financed an automobile in the past often seem confused by this when they contact our GMC dealership, which is perfectly understandable. When you purchase a car and put money down, your down payment will lower your total out-of-pocket costs. That’s because the interest on the balance of a car loan accrues daily, not all at once when you sign your loan documents.
Are There Other Costs I’ll Need to Cover?
While you may not have to provide a down payment when you sign a GMC lease, you will have to pay an inception fee. That fee will include charges for things, such as:
- Your first monthly lease payment
- Acquisition fee
- Security deposit
- Title and licensing fees
Do you want to lease a vehicle now that you know all about down payments? If that’s the case, we encourage you to look over our new car lease offers!