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How does car leasing without down payment work?

Everything you need to know about this leasing formula.

More and more motorists today choose to abandon their own car and prefer to rent. At the same time, the offers based on these rental formulas have increased. It is usually necessary to pay an advance when signing the contract, but manufacturers and rental agencies also offer car leasing without an advance .

This particular rental formula allows you to rent the car for a long period of time and to see all the fixed expenses related to the car included in the monthly rent, with no down payments. With a monthly payment we will take care of maintenance, road tax, insurance and so on. Finally, at the end of the contract, it will be possible to decide whether  or not to redeem the car  by paying a final maxi-rate.

Lease car without down payment

Car leasing without an advance differs from traditional forms precisely because it requires a fixed monthly fee, without additional amounts, right from the beginning of the contract. Leasing a car without a down payment brings the added advantage of having a single monthly fee that includes all the expenses that sometimes weigh heavily on the car owner’s wallet. We are talking here about both maintenance and road tax and RCA expenses. Furthermore, by choosing this rental formula, it is possible to change the vehicle quite frequently and therefore be able to choose, at the expiry of the lease, to take home a new car, unlike those who opt for the purchase of a car.

Used car leasing without down payment

Furthermore, car leasing without advance payment does not apply only to new cars, but also to used ones. It will therefore be possible, for those interested, to resort to the leasing formula for a used car without advance  , thus having the possibility of partially reducing the cost of the monthly installment compared to that which would be paid for a new car.

Opting for used car leasing has advantages and disadvantages. Among the pros we find a relatively low monthly installment, secondary expenses included in the fee, the possibility of having another car every two or three years and finally the fact that the car does not depreciate and is not subject to foreclosure. The cons are instead represented by the costs of the Car loan, by the lack of tax deductions – unless you have a VAT number – and finally by the preliminary investigation costs, which are often high.

Car rental and leasing without down payment: the differences

Often when we talk about car leasing without down payment, this contractual formula is confused with that of long-term rental, but there is actually a significant difference between  car rental and leasing without down payment . In fact, in best van rental Singapore, against the payment of a monthly fee, at the end of the contract the consumer will never have the possibility to redeem the vehicle, while in  car leasing without an advance, at the expiry of the contract indicated by the parties, the customer will have the right to choose whether to end the leasing contract, change it for another car, extend it, or conclude it by redeeming the vehicle upon payment of a maxi final installment. By choosing leasing, the customer does not acquire ownership of the vehicle, but only its temporary use.

Car leasing between private individuals without advance

In past years, leasing was a form of contract reserved mainly for subjects with a VAT number, therefore freelancers or commercial agents, able to deduct the leasing costs from the tax return. Car leasing between private individuals without advancehowever, it is becoming more and more popular even without the possibility for a private individual to be able to obtain tax deductions for the use of the vehicle. Often one favors this contractual formula, and not for a loan aimed at purchasing the car because, against a monthly installment of a higher amount than that envisaged for a loan agreement, the expenses relating to coupons, the maintenance, insurance coverage and even car tax. Furthermore, car leasing between private individuals without advance is often chosen by those who need, or want, to change the car frequently without therefore proceeding with the redemption at the end of the contract.

The tax advantages of leasing without down payment

As with all leasing contracts, those without advance also involve tax advantages for those who are VAT registered. The tax benefits are mainly represented by the deduction of costs at 20% and the deductibility of VAT at 40% ; the latter can reach 100% if the exclusive company use can be demonstrated.

Car leasing takeover without advance

In car leasing without down payment there is also the possibility of having a new person take over the initial user of the vehicle. The  takeover  consists in fact of an agreement between the grantor, the user and the successor with which the latter takes the place of the user, undertaking in his place to comply with the contractual conditions set out in the original contract. There is the possibility that the successor may enjoy  slightly lower installments  than those envisaged in the relationship between the user and the grantor, but for this to happen, the express consent of the grantor is required. Car  leasing takeover without down payment it also entails the obligation for the successor to pay an amount to the user. This sum is calculated by deducting from the nominal value of the leased car at the moment in which the takeover takes place, the amount relating to the installments still to be paid and the expected price for the redemption. With the car leasing takeover without advance, there are  advantages  for the person who transfers the contract. In fact, if the user is no longer interested in owning that specific vehicle, he can renounce the continuation of the contract without being forced to pay a large installment for the early termination of the leasing contract.

Prices and offers of a car lease without down payment

In the world of car leasing, the number of offers dedicated to car leasing without down payment is gradually growing. Both financial companies and car manufacturers are increasingly inclined to offer different possibilities for the purchase of the right of temporary use. 

An average city car like the Fiat Panda with 1.0 Hybrid can cost even less than 200 euros a month: 179 euros with VAT included and zero down payment to be precise. With this offer, for example, the duration of the loan is 48 months, and you only pay for the kilometers travelled. Sometimes the characteristics of the offer may differ: again for 199 euros we can in fact have a Lancia Ypsilon with 1.0 Gold Hybrid, but with a limit of 1,000 km that can be traveled on. The latter opportunity also provides for the right of first refusal at the time of resale of the car.

By opting instead for more performing and important cars, such as a JEEP Compass with 1.3 Limited PHEV Hybrid, the price of the monthly fee can rise up to 459 euros. Finally, an Alfa Romeo Stelvio equipped with a 2.2 Super Business Diesel can cost as much as 539 euros a month . These types of offers can be consulted on sites such as, or other financial companies in the automotive sector.

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