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.
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- Email: enquiries@jigsawfinance.com
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