The Best Sign and Drive Lease Deals

With sign and drive lease deals, you can leave the dealership with a new car without paying a dime beforehand. There are no upfront costs, including the down payment, fees, and taxes.

But that doesn’t necessarily mean that all sign-up costs disappear with a sign and drive lease deal. The dealership rolls the upfront costs into your monthly payments. Therefore, you get to pay more than you would otherwise have.

If you’re looking for the best sign and drive lease deals, this article outlines all the available offers to help you pick the best. It also defines sign and drive lease arrangements and why you should consider taking them up.

The Best Sign and Drive Lease Deals

Sign and Drive Lease Deals

Sign and drive lease deals are rare but that doesn’t mean you can’t the them. For December 2022, the following are some of the available offers across the United States:

YearCar ModelLease TermMonthly PaymentsDue at Deal Signing
2022Jeep Compass Latitude AWD39$449$0
2022Jeep Renegade Limited Edition48$539$0
2022RAM 1500 Bighorn AWD36$399$0
2022Dodge Durango SXT AWD48$639$0
2022RAM 1500 Bighorn AWD Crew Cab48$699$0
2022Jeep Grand Cherokee L Limited with 3rd Row48$699$0
2023Volkswagen Tiguan 2.0T S AWD39$339$0
2023Volkswagen TAOS 1.5T S AWD39$419$0
2023Volkswagen Atlas Cross Sport 2.0T SE AWD39$515$0
2023Volkswagen Atlas 3.6L V6 SE W/Technology39$655$0
2022Volkswagen Arteon 2.0T SEL R-Line with Navigation & AWD39$599$0
2022Volkswagen Arteon 2.0T SEL R-Line with Navigation and AWD36$599$0
2022Volkswagen Arteon 2.0T SEL R-Line with Navigation and AWD36$589$0
2023Volkswagen Tiguan S 2.0T39$407$0
2023Volkswagen TAOS SE 1.5T39$486$0
2023Volkswagen Atlas SE 2.0T 4Motion39$568$0
2023Volkswagen Atlas Cross Sport SE 3.6L V6 W/Technology 4Motion39$633$0
2023Kia Forte LXS36$419$0
2023Kia Soul LX36$423$0
2023Kia Sportage LX36$486$0
2023Kia Seltros S36$455$0
2023Kia Telluride LX V6 FWD36$557$0
2023Kia GT-Line36$507$0
2023Kia Carnival LX36$597$0
2023Kia Sorento LX36$529$0

Summary of Sign and Drive Lease Deals

The monthly payments for the sign and drive lease deals are high. It’s difficult to get a lease deal requiring you to pay anything under $300. Therefore, a lease deal requiring less than $500 monthly is affordable. The following are some of the under $500 lease deals:

  • 2023 Volkswagen Tiguan 2.0T S AWD for $339 monthly for 39 months with $0 due at deal signing
  • 2022 RAM 1500 Bighorn AWD for $399 monthly for 36 months with $0 due at deal signing
  • 2023 Volkswagen Tiguan 2.0T S for $407 monthly for 39 months with $0 due at deal signing
  • 2023 Kia Forte LXS for $419 monthly for 36 months with $0 due at deal signing
  • 2023 Volkswagen TAOS 1.5T S AWD for $419  monthly for 39 months with $0 due at deal signing
  • 2023 Kia Soul LX for $423 monthly for 36 months with $0 due at deal signing
  • 2022 Jeep Compass Latitude AWD for $449 monthly for 39 months with $0 due at deal signing
  • 2023; Volkswagen TAOS SE 1.5T for $486 monthly for 36 months with $0 due at deal signing

What Are Sign and Drive Lease Deals

You can use a sign and drive lease deal to drive off with a car without paying anything upfront. The lender and car dealership do not require the payment of upfront costs on the lease. Thus, it enables you to avoid the following:

  • The down payment
  • Lease fees
  • State sales tax

But there is no way you’ll walk away scot-free from your obligations. Since, there’s no down payment, your monthly payments will be based on the full amount of the capitalized cost. Plus, the lender rolls the free and taxes into the monthly payments.

Hence, the monthly payments on sign and drive lease deals are usually higher than usual. Besides, you’ll pay interest on the capitalized cost plus tax and sign-up fees.

Say you have a 36-month lease with a capitalized cost of $20,000 and $4,000 due at deal signing. The sign-up fees and taxes are worth $2,000 and your down payment is $2,000. Your monthly payments will be based on $18,000 and will be $500 before interest.

However, getting a sign and drive lease deal for the same vehicle can result in slightly more expensive monthly payments. In that case, the monthly payments will be based on the $20,000 capitalized cost plus sign-up fees and taxes worth $2,000. The new monthly payment will be $612.

The change in monthly payments appears slight but can prevent you from accessing a car to lease. Therefore, as enticing as they are, sign and drive lease deals can be expensive in the long-run.

How to Qualify for Sign and Drive Lease Deals

A car dealership is involved in a big gamble when agreeing to sign and drive lease deals. They literally giving away a vehicle for free. What if you never pay for it? What if the vehicle is stolen or totalled before the first monthly payment falls due?

Given the risks of sign and drive lease deals, you need an impeccable credit score to get it. You should have a credit score of at least 680. Anything between 620 and 679 would give a car lease, but with a down payment and upfront costs.

How Sign and Drive Lease Deals Work

Sign and drive lease deals are not very common. Dealerships offer them for a short time based on several events and promotions. Thus, time-limited deals may last for a week, month, or three months, depending on the manufacturer and dealership.

Therefore, you should always be on the lookout for the best sign and drive lease deals. Once you get one, you should be ready for substantially higher monthly payments. However, some deals may have affordable monthly payments.

After all, having a sign and drive lease deal doesn’t mean you’re exempted from taxes or lease fees. The dealership may require you to pay the taxes and costs upfront or as part of your monthly payments.

Benefits of Sign and Drive Lease Deals

With a sign and drive lease deal, you can enjoy several benefits. Here are some of the ways this kind of lease deals will help you:

  • No Down Payment: A sign and drive lease deal enables you to avoid making a down payment. Thus, you can get a car to lease without paying substantial amounts upfront. For many families that cannot raise large sums of money, it is the easiest way to get a car.
  • Wise Vehicle Choice: when leasing a car, you need to be in control of the kind of vehicle you want. With many available sign and drive lease deals, you can choose a vehicle that meets your needs and fits your budget.
  • No Taxes or Upfront Costs: It’s possible to avoid taxes and upfront costs, at least during deal signing. The dealership rolls these costs into your monthly payments, spreading them over the entire lease term.
  • Reduced Risk: With a sign and drive lease deal, you’re protected from the risk of losing money when the vehicle gets stolen or totalled. If you got involved in an accidental soon after leasing the vehicle, you’ll only lose the monthly payments you had made – nothing more.

Demerits of Sign and Drive Lease Deals

Sign and drive lease deals come with obvious disadvantages, which you may want to avoid. They include the following:

  • Higher Monthly Payments: Avoiding to pay lease fees and taxes upfront doesn’t exempt you from them. That applies to the to the down payment too. All these costs raise what you would have made in monthly payments, making them more expensive. Plus, you must pay taxes on all of these items.
  • Higher Interest: On a normal lease deal, you’ll pay interest on the capitalized cost minus the down payment. However, with a sign and drive lease deal, you’ll pay interest on the total capitalized cost plus lease fees and taxes. Thus, interest on the lease is higher.
  • Upfront Fees: Sometimes the dealership may exempt you from the down payment but not fees and taxes. Thus, before driving off with the car, you’ll have to pay all the taxes and fees upfront. Therefore, you should be ready to pay these fees and taxes.

The Bottom Line

Which of the sign and drive lease deals appeal to you the most? Critically, you should get a lease deal whose monthly payments you can afford. Remember, the lease fees and taxes will be rolled into the monthly payments. Since you aren’t putting down any money, you can’t bargain to have the monthly payments reduced. These deals are available periodically for a short time, so you shouldn’t always bank on them.

Frequently Asked Questions (FAQ)

Can I get a sign and drive lease deal?

Yes, you can get a sign and drive lease deal if you have an impeccable credit score of 680 and above. However, these lease deals are not available all the time. Some dealerships may make the offers for a short time to promote their businesses.

Which car brands offer sign and drive lease deals?

Several car manufacturers offer sign and lease deals. They include Hyundai, Honda, Nissan, Chevrolet, Volkswagen, Dodge, and RAM. These brands offer difference vehicle models on this arrangement, requiring you to pick the most affordable and suitable one.

How do I sign and drive a car?

You can sign and drive a car by taking advantage of any existing deals. Check online for the advertised manufacturer-backed deals. Even though possible, it can be difficult to negotiate a lease deal to zero upfront costs.

What does it mean to sign and drive a car?

To sign and drive a car means walking into a dealership, signing a lease agreement, and driving away a car without a down payment, taxes, and fees. The upfront costs become part of your monthly payments over the entire lease term.

Why would you consider a sign and drive lease deal?

A sign and drive lease deal has many benefits. It enables you to avoid making a substantial down payment. Plus, you can select a vehicle that fits your budget. Lastly, you may avoid the leasing upfront costs in the meantime.

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