Lease Inception

The term, lease inception or lease inception cash, refers to the up-front money that is due at the time a car lease agreement¬†is signed (“lease signing”).

Lease inception cash includes first month’s payment, tag and title fees, down payment (cap cost reduction), sales tax on the down payment, and possibly a security deposit. Other fees, official or non-official, may also apply. Rebates may be applied to offset this amount.

Lease inception cash (“cash due at lease signing”) is often confused with a down payment. Remember, a down payment, if any, is only a part of total lease inception cash.

If you only have a particular amount of cash that you can apply to your lease, ask your dealer to tell you how much of it will be applied as a down payment after all other fees and charges have been subtracted.

In other cases, you may want a specific amount to apply as a down payment and have the other inception costs added to it. It can be done either way. Let your dealer know before he calculates your lease payment.

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