What does 0% Leasing mean?
0% leasing is a financial offer in the leasing market where the lessee benefits from not having to pay any interest on the financed amount of the lease.
In this arrangement, the monthly payments are determined purely by the vehicle's depreciation over the lease term, alongside any applicable fees, excluding the usual interest charges. This setup will reduce the price of the monthly leasing rates.
Often, leasing companies, banks, or manufacturers will offer 0% leasing in order to promote certain models or specific vehicles.
If offered a 0% lease, it's crucial for lessees to thoroughly examine the lease agreement. Promotional offers like 0% leasing might come with specific conditions, such as a larger down payment, or fees that could affect the overall cost savings. It is important to do the math and ensure that the deal effectively leads to savings on the customer’s side.