The term, pre-paid lease, refers to the concept of paying for an entire car lease obligation up-front in cash rather than having monthly payments.

These are sometimes called “single-pay” leases, “single payment” leases, or “one-pay” leases. The primary benefit is avoiding the hassle of regular payments but there can be cost savings as well, depending on how the lease finance company computes the single up-front payment. It’s not like paying cash to avoid a purchase loan.

For more details and examples, see the article, Single Payment Car Lease.