Can You Lease Without A Deposit?
Posted: 2nd May 2017
The simple answer is yes, you can. There are benefits to leasing without paying a deposit and it is great for you to know no deposit car leasing is possible. There are downsides to not paying a deposit, but in many cases, these are outweighed by the positives.
Car leasing agreements depend entirely on whether or not you can afford the monthly payments for the duration of the agreement. If you can prove that you can do that, then you can lease a car without a deposit.
The only downside
Let's get the downside of not paying a deposit out of the way, so we can talk about the positives. If you don’t pay a deposit, your monthly payment amounts will increase. This is because the initial deposit pays off a certain amount of the agreement’s value and by not paying that, the amount folds into the monthly amounts.
However, you can make other choices on the lease that keep monthly payments low.
It doesn’t have to affect your lease
The series of monthly payments you pay are affected by more than just the deposit. The two main factors are the length of your agreement and the annual mileage allowance you choose at the beginning of the agreement.
The longer the agreement you choose to sign up for, the more the value is spread across the agreement period. Leasing agreements are between 24-60 months with most coming out at 48 months. This means that your monthly payments will be lower as a result, which could counteract the choice not to pay a deposit.
The other factor is the annual mileage allowance that you set. Leasing agreements are valued by the depreciation of the car over the duration of the agreement. This means that the higher the mileage allowance, the more the value of the car is likely to depreciate. That means that the lower the mileage allowance you set, the lower your monthly payments will be. Again, this can easily counteract the choice not to place a deposit down.
Why should you not place a deposit?
The requirement to place a deposit to lease a car can be a barrier for some people. We don’t want anyone to be barred from getting a car and therefore we offer people the chance to lease a car without needing a deposit.
There are those who either don’t have the money for a deposit or don’t wish to spend their money on a deposit. However, those same people can easily afford the monthly payments, so it is unfair to stop them getting the car that suits their needs and can help them commute to work or with the weekly shop or go on holiday and so on.
If you are looking to lease a car, but don’t wish to pay a deposit, you will be happy to hear that you can still lease a car. The monthly payments will be slightly higher, but as long as you can afford those payments, you should easily be accepted and be driving away in no time. We have a variety of great no deposit car lease deals on an excellent selection of cars that you can browse now.
If you do find a car that you like and suits your requirements, enquire with us and our staff will work out the best deal for you.