How do I know what initial payment option to choose?

26/11/2021  Finance Products All News

When leasing a vehicle, you are required to make an initial rental payment, also referred to as an up-front payment.

  • The initial rental payment is calculated as a multiple of the monthly rental, typically, you can choose a multiple of 1, 3, 6, 9 or 12 times the monthly rental.
  • The initial payment amount is then taken off the total cost of the lease offer, with the remaining amount divided equally into monthly rentals until the end of contract.
  • The larger the initial rental, the lower the monthly cost.

So how do I decide which payment option to choose?

Although putting in a larger initial rental will lower the monthly cost; it won't make the overall deal any cheaper.

Lower initial rentals are handy in that they keep the up-front cost low; however, the monthly cost is higher.

When deciding upon what payment option to choose, ensure that both the up-front and monthly rental amounts are affordable to you.

Make an enquiry today and let our team help you into your perfect next car:

Apply for vehicle finance online at Jigsaw Finance:

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Jigsaw Finance Limited is a credit broker and not a lender. We can introduce you to a limited number of lenders and their finance products. We are not an independent financial advisor; we will provide details of products available, but no advice or recommendation will be made. You must decide whether the finance product is right for you.

Whichever lender Jigsaw Finance Limited introduces you to, we will typically receive commission from them (either a fixed fee or a fixed percentage of the amount you borrow).

All of the lenders that Jigsaw Finance Limited work with could pay commission at different rates and the commission values could vary between finance products, but the commission we receive does not influence the interest rate you will pay. Jigsaw Finance Limited's aim is to secure finance for you at the lowest interest rate available from our panel of lenders.

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