At the time a car lease contract is signed, there are payments and fees that must be paid by cash or check. These combined costs are called  “amount due at lease inception.”

The costs and fees that are typically due at lease inception can be some or all of the following:

• First month’s payment
• Down payment (cap cost reduction)
• Tax on down payment
• Official tag and registration fees
• Security deposit (very rare)

Although some leases do not require a down payment, the first month’s payment and official fees are still required. In this way, “down payment” and “amount due at lease inception” are different.

Posted in: General