"Due at signing" is a term used in car lease agreements to describe the amount of money the lessee needs to pay upfront to initiate the lease agreement. This amount typically includes:
- First month's payment: The lessee typically pays for the first month of the lease agreement upfront.
- Security deposit: This is a refundable deposit that can be used by the lease company in the event of damage to the vehicle or default on payment.
- Down payment: Some lease agreements may require an upfront down payment. This is a set amount of money that reduces the total lease cost overtime.
- Documentation fees: These fees cover the paperwork associated with the lease agreement.
- Title and registration fees: These fees cover the cost of registering the vehicle and obtaining a title from the state.
- Lease acquisition fee: This is a fee collected by the lessor for arranging the lease.
It's worth noting that the amount due at signing can often be negotiated, and some leases may even offer no-money-down options. Remember to read the details of your lease agreement carefully and consult a financial advisor if needed.
Learn more:
- Lease Explained - Investopedia
- 5 Car Lease Strategies You Didn't Know About - Autotrader
- Are No Money Down Leases For Real? - Nerdwallet