# What does ZERO DOWN really mean?



## Gup (Mar 25, 2011)

I am in NJ and am curious what it actually means when a dealer advertises zero down. 

For example, a buddy of mine went the other day to test drive a c300 benz. The dealer said zero down but when all FEES were said and done, the initial payment would be $2400! This included tax, registration, title, license plates and some "other" fees as well.

I am bit skeptical so I wanted to ask you guys here. What does it really mean when is says ZERO DOWN? Do you ever really pay zero down ever or is this just another way the dealers lure in the fish?


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## ctorrey (Mar 17, 2007)

Zero down typically means either zero down payment (financed) or zero cap cost reduction (leasing), but usually requires the payment of various fees (e.g., RMV, documentation, lease acquisition, security deposit, etc.). Zero "drive off" usually means no money changes hands and you get the keys. However, I would imagine that all the aforementioned fees would be rolled into the loan/lease. Just like financing a house; there's no such thing as a "no fee" loan. You're paying those fees one way or another.


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## adrian's bmw (Feb 14, 2003)

ctorrey said:


> Zero down typically means either zero down payment (financed) or zero cap cost reduction (leasing), but usually requires the payment of various fees (e.g., RMV, documentation, lease acquisition, security deposit, etc.). Zero "drive off" usually means no money changes hands and you get the keys. However, I would imagine that all the aforementioned fees would be rolled into the loan/lease. Just like financing a house; there's no such thing as a "no fee" loan. You're paying those fees one way or another.


:stupid:

And you usually have to pay first payment.


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## mclaren (Jan 5, 2005)

*Lease a brand new 2011 BMW 328i for $99 per month. That's right folks, no mistakes, no misprints, $99 per month for 3 years, 12,000 miles per year. *
That type of ad led to the zero down ads because when people went in for the $99 per month lease they found out they had to put down $12,000 for a cap cost reduction. This is an exaggeration but the point is valid.


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