Originally Posted by tragic22
The way I'm seeing it is if the money is refundable and it reduces your monthly payments then there is no reason to ever put money down if you can put that as same money as a security deposit. Is that safe to say?
well, they are two totally different things:
multiple security deposits - that's basically lowering your money factor which means your APR is being reduced, hence why your payments are lower. you are basically fronting a lot of cash in order to "buy" a cheaper rate from the bank (it gives them more confidence in you). if you have some other use for your cash and can make a good return on it, paying multiple deposits may not be for you.
money down - this is reducing your cap cost on the lease at the start of the lease term. basically let's say your lease payments are worth about 20000. you can either pay your lease in 36 months equally, or you reduce the monthly pymt by paying down 5000 first and then calculating the 36 payments.
you can do either. money down isn't money lost. you are just prepaying a part of your lease up front. but yeah, if your ONLY reason to put money down is reduce your monthly payment, AND you have enough cash to front 9x security deposit, then lowering your money factor is not a bad way to go. if you have zero use for your 9x security deposit, then reducing your money factor results in you getting the car for "cheaper".