Leasing · Broker Black education

Money down on a lease: when it helps.

Broker Black starts every lease example at 10 percent of the selling price down, so cars compare evenly; whether you should actually put money down is a separate question. Money down on a lease (a capitalized cost reduction) lowers the amount you pay for and therefore the payment: $5,000 down on a 36-month lease removes about $139 a month plus the rent charge on that amount. It also becomes the lender's money the moment you sign.

By Broker Black · Published September 18, 2026 · Part of Leasing basics: how a car lease works

What money down does and does not do.

Alternatives that keep your money.

OptionPayment effectRefundableNotes
Money downLowerNoTaxed at signing in Arizona and Nevada
Multiple security depositsLower (rate cut)YesUp to 10 with Mercedes-Benz Financial Services
One-pay leaseNone monthly (all prepaid)NoLender lowers the rate
Zero downHighest monthlyn/aNothing at risk in a total loss

Why Broker Black uses 10 percent in its examples.

A default lets every car on the site show a comparable payment. Ten percent of the selling price is a common real-world figure and keeps drive-off totals realistic. It is not a recommendation: set money down to zero, or any amount, on the vehicle page and every number on that page updates. Trade equity is handled separately and only when you enter a trade or apply an appraisal.

Rule of thumb: put down only what you would not miss if the car disappeared. If you want a lower payment and have the cash, deposits keep it refundable.

Quick answers.

Is it bad to put money down on a lease?

It is not bad; it is prepaying. The downside is that it is not refundable in a total loss and it does not reduce the lease's real cost. Deposits do more for the same cash.

Is money down on a lease taxed?

In Arizona the cash you put down is taxed at signing (AZ Department of Revenue ruling TPR 03-7). In Nevada the full capitalized cost reduction, including a trade allowance, is taxed. Broker Black includes it in the drive-off.

Why do Broker Black's payments say 10 percent down?

It is the site's comparison default. Change it on any vehicle page; the profile remembers your figure.

Can I lease with zero down?

Yes. The payment is higher and the first payment, acquisition fee, doc fee, and registration are still due at signing unless rolled in.

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