Can You Pay for a Lease Up Front, and What are the Benefits of a One-Pay Lease?

One of the best parts of leasing is knowing exactly what you'll pay over the course of a few years, and knowing what the vehicle will cost at the end of the term.

If you can know exactly how much money you'll be paying over those 24, 36, or 42 months, you may be wondering if it's possible to just put all the money down in one lump sum, and be done with it.

The answer is: yes. You can pay for the entirety of a Mercedes-Benz lease up front. If you have the money, it's an extremely convenient way to pay: you won't have to worry about making payments on a monthly basis. And, it could actually save you hundreds, if not thousands, of dollars over the course of your lease.

Paying a Lump Sum Could Lower Financing Rates

Although we typically think of "financing" as buying a car and getting a loan, you do need to finance the amount you borrow for a lease--and that means that there are financing rates involved. Fortunately, like with a conventional loan, the shorter term you choose, the lower your rates will usually be because the loan company will be getting their money back faster. If you choose to put down a lump sum on a lease, the loan company isn't taking a large risk, and will usually offer incredibly low financing rates, or even 0% financing.

The Credit Approval Process for a One-Pay Lease is Fast

If you don't want to spend any more time than necessary arranging financing at the dealership, a lump-sum lease payment may be in your favor. Since you'll be proving the full term's payment at once, the only real numbers work to be done is deciding term/mileage/model and getting a hard estimate for the residual. If you apply online beforehand, the entire process could take just a few minutes in the actual finance office.

Paying Upfront for a Lease Could Save You Thousands

Lower financing rates--or 0% rates--means major cuts to overall costs. When you pay upfront, you're dodging years of interest on the amount that you would have had to borrow for a typical lease. Even for a lease on a lower-cost, entry-level luxury car, paying a lump sum could save you more than $1,000 in payments. For a lease on a Mercedes-Benz S-Class, Mercedes-Benz GLE, or a Mercedes-AMG performance car, putting down money up front could save you multiple thousands of dollars.

For this reason, lump-sum leasing is increasingly popular for drivers who intend to pay cash for a new luxury car--you can use only a portion of the total amount to pay for the lease up-front, and save the rest to gain interest until you're either ready to buy the vehicle, or to lease again.

Contact Mercedes-Benz of Durham to learn about how easy--and how beneficial--a Lump Sum Mercedes-Benz Lease could be for you.