A financial arrangement allows lessees to satisfy the total lease obligation with a single, upfront payment. This contrasts with traditional leasing, where payments are remitted monthly over the lease term. For example, instead of paying $500 monthly for 36 months, the entire $18,000 (before discounts or fees) is paid at the lease inception.
This method offers several advantages, including potential cost savings through reduced interest charges, streamlined administration with no recurring payments, and a simplified financial outlook. This type of lease has become more prevalent as consumers seek alternatives to traditional financing and look for ways to potentially lower the overall cost of vehicle acquisition.