TRUTH OR TRICK: $0 DOWN (ZERO DOWNPAYMENT)?

RUS version here

The owner of PANAUTO MIAMI continues to assist us with leasing matters. In this issue, we will discuss downpayment, hidden fees, and a bit about miles.

When you see in an advertisement that there's no down payment, is that really true or will there still be a minimum one-time payment? How is this determined?

I think this is an important question. I appreciate you asking it. Dealership advertising cleverly uses terminology to attract the attention of a client that wants to see this or that without understanding the details. The biggest misconception is that we forget about the standard fees (inception fees) and the payment of taxes, which are present in almost all of our daily purchases and which we rarely consider. In the case of purchasing a car, they are much more significant, since the car itself costs many times as much as daily purchases. If you examine checks in detail, for example, from restaurants, you will be shocked at all the additional fees that can be on them, up to the fee for paying by credit card. Compared to the cost of a car worth $40,000, it is not very noticeable, but when the cost of the vehicle is this high, it is very noticeable..

Let's clarify what a downpayment is - is it the amount paid to recoup the lease body and not the inception fees? What are these inception fees and how much do they cost?

Fees vary depending on the bank, state, county, dealership, and their policies, but a +/- understanding can be made. Below are the standard fees for a new car.

1. $450 / 350 for DMV car registration and new / old license plate transfers, title work.
2. $899 - acquisition fee - one-time bank commission (usually hidden in a lease and spread over the course of the lease)
3. $799 - dealer fee . A one-time commission of the dealership (usually covered by a discount on a car)
4. First monthly lease payment. Payment in advance, like renting an apartment
5. Down payment . It is only that portion of the first payment that exceeds the inception fee (the sum of all fees and the first monthly payment). We can calculate this amount for a car with a monthly payment of $500 as follows

Those inception fees are $450 (DMV) + $899 (acquisition fee) + $799 (dealer fee) + $535 ($500 + 7% Miami-Dade county tax) = $2,683. Therefore, anything above $2,683 is considered a downpayment

In order to understand exactly what fees you have to pay and receive the small monthly payment indicated in the advertisement, please read the small text under the ad carefully. Downpayments and additional payments are skillfully concealed in the text. Generally speaking, there are 3 common terms used to describe the presence or absence of a downpayment:

• Sign & Drive - all fees are included in the lease and are proportionately divided into monthly payments, thereby increasing them accordingly. For example, the $535 monthly payment becomes $610. The recalculation formula roughly looks like this: $535 + $2,683 (inception fee) / 36 (average lease term per month x ) + $535 = $610.
• $0 down - The inception fee is $2,673, and you have 35 payments of $535 each.
• $799 - dealer fee. Official one-time commission of the dealership (often covered by a discount on a car from a dealer)
• Donwpaymet . For instance, suppose the dealer announced the numbers at $3,000 down. The first installment will then be: $3000 (downpayment) + $2,683 (inceptions fee) = $5,283. In this case, the monthly payment will decrease proportionally to the downpayment: $416+tax. Recalculation formula: $500 - $3,000 / 36 = $416

For accurate tax calculations, both the dealer and PANAUTO MIAMI use a special program. We have access to leasing and financing programs for almost all brands and models available on the US market. All of our transactions are free from extra fees and hidden charges because we control and carry out purchases through the brand's fleet department. Since 2014, PANAUTO MIAMI has purchased more vehicles than some companies with international names, allowing us to always offer better terms to our customers. Because of that, the savings are often thousands or even tens of thousands of dollars, depending on the car's cost and how much the dealer's manager tried to earn from you.

Does it make sense to pay more downpayment and pay less per month, or vice versa??

We do not recommend giving a large downpayment if your credit history allows. If the car is totaled, it's very difficult to recover the downpayment. It might be lost completely..

Do I need to keep track of my miles? Will I be forgiven for overspending?

Overspending is not forgiven in 99% of cases. It is also possible for the dealer to deceive the customer and hide this amount in the lease, just missing the discount for the same amount. Clients who lack inside information may not be aware of these tricks. Further, the dealer specializes precisely in providing a service and selling a car as expensively as possible, while at the same time leaving a smile on the face of the customer. Every day, they work with hundreds of clients who are looking to save money and know exactly what, where, how, and at what moment to present the client for maximum benefit.

There are cases of forgiveness when a manufacturer promotes a particular model and offers a small discount or promotion. This happens very rarely and you should not rely on them.

Depending on your personal situation and preferences, PANAUTO MIAMI is always a good place to find out about current promotional offers, discounts, and programs. This is what we do - to pick from the masses of offers on the market and provide you with the most beneficial one for you!

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