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What is due at lease signing?

Typical amounts include the first payment, an acquisition fee, any capitalized cost reduction, taxes and registration. The itemized contract, not the advertised payment, is the complete record. This leasing and financing answer depends on First payment, Acquisition fee, Cap-cost reduction, Taxes and registration. Confirm each against the exact vehicle rather than assuming a class-average figure. The sections below break this down further: what the amount usually contains, why a large amount due is not always wise, how it interacts with the payment. 5 related follow-up questions are answered separately below, each with its own conditions attached. This site reviews every answer under a configuration-first standard, verified against CFPB auto-loan and lease guidance and linked to related leasing and financing questions for the adjacent decisions this one usually raises. It sits within a leasing and financing library of 8 related questions, held to the same configuration-first standard.

Typically the first monthly payment, an acquisition fee, any capitalised cost reduction, and taxes and registration. The itemised contract, not the advertised payment, is the complete record.

Advertised lease payments frequently assume a substantial amount due at signing, which is what makes the monthly figure look low.

What the amount usually contains

Each line should be visible on the worksheet.

  • First month's payment
  • Acquisition or bank fee
  • Capitalised cost reduction: effectively a down payment
  • Taxes, title and registration, depending on state treatment
  • Any documentation or dealer fee

Why a large amount due is not always wise

A capitalised cost reduction lowers the payment but is generally not refunded if the vehicle is totalled or stolen early in the term.

Many advisers suggest minimising it and confirming gap coverage, so that a total loss does not also cost you the money you put down.

How it interacts with the payment

A larger capitalized cost reduction lowers the monthly payment, which makes a lease look cheaper without being cheaper. The money was simply paid up front.

Compare total lease cost: amount due at signing plus every monthly payment, plus any disposition fee at the end. That is the number that makes two leases comparable, and it is also why keeping cash down modest is usually the better structure.

  • A larger down payment lowers the payment without lowering cost
  • Compare due at signing plus all payments plus disposition fee
  • Keep cash down modest: it is not recovered in a total loss
  • Confirm the disposition fee before signing

What changes the answer

  • First payment
  • Acquisition fee
  • Cap-cost reduction
  • Taxes and registration
Methodology: how to verify an answer on one vehicle →Search EPA configurations →Decode the VIN →Check recall campaigns →

Common follow-up questions

Is a lease down payment refundable?

Generally no. A capitalised cost reduction is consumed by the lease, and it is typically not returned if the vehicle is totalled early, which is why gap coverage matters.

Why is the advertised payment so low?

Commonly because it assumes a large amount due at signing, a short mileage allowance, or both. Compare the itemised terms, not the payment.

Can I roll the amount due into the payment?

Often yes, which raises the monthly figure. Compare total cost across the term instead of the upfront amount alone.

Should I put a lot down on a lease?

Usually not. It lowers the payment without lowering total cost, and a capitalized cost reduction is generally not recovered if the vehicle is stolen or totalled.

How do I compare two leases fairly?

Amount due at signing, plus every monthly payment, plus any disposition fee at the end. That total is what makes them comparable.

Related questions

Leasing and financing questions and answers: the complete category

What are my options at the end of a lease?→What is a money factor on a lease?→What is residual value on a lease?→What is capitalized cost?→

Evidence

What is normally in the due-at-signing figure

The due-at-signing amount on a lease is the cash you hand over on day one. It usually includes the first monthly payment, the lender's acquisition fee, registration and title fees, the dealer's documentation fee, sales tax on the down payment and sometimes on the monthly payment, any capitalized cost reduction (the lease term for a down payment), and a refundable security deposit when the lender requires one. Acquisition fees commonly run from about $595 to $1,295, with luxury brands at the high end.

Two of those items are not extra costs. The first payment is simply the first installment of the lease, and a security deposit comes back at the end of the lease less any charges for damage beyond normal wear. A capitalized cost reduction is the item to question: it lowers the monthly payment by roughly the amount paid divided by the number of months, but if the car is totaled or stolen early, that money is generally not returned by the lessor, so many advisers suggest keeping it small.

When you compare offers, compare the total of the due-at-signing amount plus every monthly payment, and divide by the months, so a low payment funded by a large upfront payment is visible. The Federal Reserve's consumer leasing guidance describes the disclosures a lessor has to provide, including the amount due at signing.

A worked example with a real price from our records: a Toyota Camry 2025 LE at $31,320, a 36-month lease with a 58 percent residual ($18,166) and a money factor of 0.0015 (about 3.6 percent APR), no down payment. Depreciation is $365 a month and the finance charge $74, so the payment is about $440 before tax. Adding a $795 acquisition fee, the first payment brings the due-at-signing amount to about $1,235, before registration and tax.

Sources: CarsDirect: Amount due at lease signing; Federal Reserve: Consumer leasing disclosures