Leasing to do buyout. How to handle down payment

[leecm]

I know you shouldn't typically do a down payment when leasing, but does that apply to a lease that you intend on instantly buying out? I will be financing the buyout amount and I want to only finance about $20k. What is the best way to to pay the remainder (approx $25k)? Should I pay it during the lease process? If I pay it to my lender the $25k will go to my principal but my payment will still be high as if I borrowed $45k. That is what I'm trying to avoid.

 

[brancky3]

I would personally lease with $0 down and then put that cash up front when you go to buy the car. I don't agree with anything down when leasing.

 

[leecm]

I would personally lease with $0 down and then put that cash up front when you go to buy the car. I don't agree with anything down when leasing.

So then I would just have to deal with the larger monthly payment?

 

[brancky3]

So then I would just have to deal with the larger monthly payment?

You wouldn't have a larger monthly payment.
For example, let's say you lease a new GT2 with 0 down and get a monthly payment of $600 after all rebates / incentives are applied. Then, you want to buy the car out for a purchase price of $45k. You would work your lender / Kia for financing (this is completely separate from your lease financing) and give them $25k down. They will finance the difference of $20k for you and your monthly payment would be made on that $20k.