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      03-14-2009, 11:07 AM   #11
Paddy
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Drives: 18' M2, AW
Join Date: Nov 2005
Location: San Diego

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2 cases where it makes sense...

1. Peace of mind, to reduce the monthly from $600 range to $500 range, for example.
2. Putting a small amount down to reduce the monthly for MSD. MSD are rounded up to next $50, so if your monthly is $601, your MSD's will cost $650 each. A small down payment would reduce your MSD's to $600.

Any down payment "may" be at risk if your car is totalled, other than that risk there is no downside to making a down payment.

Putting money down will reduce the amount you are financing and thus reduce the total interest you will pay over the life of the lease.

If you can guarantee a better savings rate (after tax) on the down payment value than the equivalent lease rate, then you may be better off not putting the money down. This is admittedly a rare case, but for a while there 08' lease specials were going for almost 0% MF with 2 MSD's.

A couple 2-3K down is no biggie, anything more should be considered carefully.
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