Benefits of One-Pay Leasing

Many drivers have never even heard of a one-pay lease, also called a single-pay or pre-paid lease. But it can be a great option for drivers who want to lease a car and save even more money than the usual lease, without having to worry about monthly payments.
 
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Pay Less Interest

With a one-pay lease, you pay the entire cost of the lease upfront, usually saving a hefty amount of money thanks to lower interest rates and paying interest on a smaller amount of money.

When you lease a car, you pay not the full MSRP of the vehicle but the cost of depreciation—so if a car loses 40% of its value over three years, you pay 40% of the MSRP on your lease. When you do a normal lease with monthly payments, you also pay interest on the full MSRP.

With a one-pay lease, on the other hand, because you pay the whole lease amount in a lump sum, you only pay interest on the residual value of the car, i.e. whatever the car will cost after it depreciates. If it’s the same interest rate of, say, 3%, on a car that costs $20,000 initially, a normal lease will add $600 in interest, while a one-pay lease will have just $360 in interest.

But one-pay leases don’t usually have the same interest rate. Actually, interest rates on one-pay leases are often much lower than they are for leases with a monthly payment, meaning you’ll save even more money.

Easier to Qualify

The higher your down payment on any purchase, the easier it is to qualify, which is why big down payments can be so useful to people with poor credit scores. The same is true of one-pay leasing.

If you have a poor credit score and are able to save up enough money for a one-pay lease, you’ll have a much easier time getting approved, since the dealership doesn’t have to worry about whether you’ll make your monthly payments.

All the Benefits of Leasing

Whether you do a one-pay lease or a monthly payment lease, you get all the great benefits of leasing, like getting a new car every couple of years with state-of-the-art technology, cheaper maintenance cost thanks to factory warranties, and costs that are easy to fit into your budget.

One-pay leasing just gives you less to worry about over the course of the lease, lets you save up more money that would be going toward a monthly payment, and costs less overall.


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