Counterpoint: every dollar you put down up front is a dollar at immediate risk in the unfortunate event of vehicle loss (totaled in collision, theft, fire, flood, tornado, hailstorm, bad off-road decision, etc.), particularly in the first year or two of heavy depreciation. Whereas the value of the vehicle that's financed may be protected (gap insurance). Say you put $10k down on your new Bronco, drive it off the lot, immediately get t-boned by a Suburban driven by a teen looking at his/her phone. If the insurance deems it a total loss, they typically will only cover market value. Which, since the vehicle is now used, is much less than you paid for it a mere 15 minutes ago. Now, your insurance policy may pay for a brand-new, off-the-lot replacement at no cost to you. But many (most?) do not. Kiss several thousand of those down-payment dollars goodbye.
- The easiest way to reduce your risk is to increase your down payment
Personally if I can get an attractive lease/loan rate, I'd prefer to put that $10k in a separate bank account and use it to pay down the loan after my greatest risk of financial exposure is over (the highest depreciation periods). Ultimately you're paying more in the long run (the interest you're paying on that $10k, unless you can offset it with a decent return on it while it sits in the bank or in an investment), but it may be worth it to you. The secret is DON'T PUT THAT MONEY WHERE YOU'LL END UP SPENDING IT ON SOMETHING ELSE.
This is why I think people are crazy to put big cash down on a lease just to lower their monthly payment. You're just putting all that cash at immediate risk. Let the gap insurance alleviate that risk for you. (Just make sure it's included in your financing package - many lessors include it by default these days.) When I lease a vehicle, I drive away without putting down a single dime.
Frankly, even if I had the cash-in-hand to purchase a vehicle outright, I'd still probably finance/lease just to get that extra protection up front. Then pay it off in full when that protection is not as important.
Also, as they say in the case of societal economic disaster: cash is king. Better for you to have some on hand than have turned it all over to your local Ford dealer.
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