Helpful Hint.

COST REDUCTION THROUGH INCREASED DOWNPAYMENT

For every $1,000 you place as a cost reduction at start of lease you will lower your monthly payment by approx.

$87.00 per month - 12 Months - per $1,000 down
$46.00 per month - 24 Months - per $1,000 down
$32.00 per month - 36 Months - per $1,000 down
$24.00 per month - 48 Months - per $1,000 down
$21.00 per month - 60 Months - per $1,000 down

*Note : for every $1,000 down as a cost reduction, you will actually pay $1,140 ($1,000+PST+GST)

For Example

If you are putting money down as a cost reduction, keep 2 things in mind.You will lower your monthly payment
For instance, if you put $5,000 down on a 48 month lease you will lower your payment by approx. $120 per month. But bear this in mind...if your buy-out at the end of the lease is $10,000 and you decide not to purchase the vehicle, but instead sell it, and lets's say it sells for 12,000...you have profitted $2,000 at the lease expiry, and you have had the benefit of a $120 per month lower payment. That is great if lower monthly payments was your purpose. But you are only getting $2,000 of your original $5,000 down payment back. The balance of $3,000 was eaten up by the lower monthly payment schedule.

Another idea would be to put the money down and lower your buyout by $3,000 down to $7,000. This way your payment comes down by $50 per month and you get your $5,000 back at the lease expiry, all things being equal and if the vehicle has retained the $12,000 value. Then you can throw the sum at a new lease, using the same scenario.