The basic concept of a single payment lease agreement is the consumer will make a large, one lump sum payment at the beginning of the lease term. Where a typical lease agreement is based on monthly payments, this type of lease is one lump sum. Before getting into this type of lease, or any other car lease for that matter, be sure to know the future costs of leasing by calculating car lease payments, or the how to calculate effective lease payments.
The idea with a single payment lease is the consumer can save more money by paying in advance and avoiding any multiplying interest rates. If you consider this type of lease, make sure you first compare to ensure you’re not being overcharged by calculating the single lease payment.
A dealership may attempt to calculate this differently, thus making it unattractive to the consumer. But think about it….no interest charges…the difference a consumer pays between principal and interest can be profound. Do the math, know the difference!