LookyLeasy · Glossary
Due at Signing
Due at signing—sometimes called drive-off or upfront cost—is the cash paid when a new lease starts, often including first payment, security deposit, acquisition fee, taxes, and cap cost reductions. Original lessees paid this at their signing; takeover buyers usually face different upfront costs centered on transfer fees and negotiated incentives rather than a full new-lease drive-off.
Typical due-at-signing components
New leases may bundle first monthly payment, refundable deposits, doc fees, and down payment equivalents. Amounts vary widely by credit, incentives, and state tax rules.
Assuming a lease rarely repeats the entire original drive-off, but buyers should still budget immediate out-of-pocket items.
Upfront cost on a takeover
Buyers often pay transfer fees, registration changes, and possibly reimburse seller incentives agreed in reverse. Some deals advertise little due at signing if the seller covers fees.
Clarify every upfront line item in writing before meeting or sending money.
Comparing takeover to new lease signing
Takeovers can avoid large cap reductions advertised on new cars, which appeals to buyers preserving cash. Compare total remaining payments plus upfront costs on both paths.
A new lease with heavy factory incentives might still beat an assumed payment once you model full term cost.
Popular links
FAQ
Do takeover buyers pay due at signing again?
Not the original new-lease drive-off, but transfer-related fees and agreed cash between parties may still be due upfront.
Can seller incentives reduce due at signing?
Yes. Cash from the seller effectively lowers what the buyer brings to the deal.
Is due at signing negotiable on a takeover?
Buyer and seller negotiate who covers fees and incentives. The lessor's transfer fee is usually fixed.
Does due at signing include tax?
On new leases, often partially. On takeovers, tax treatment depends on state rules for assumptions and registration.
Take the next step
Browse active lease takeovers, list your lease for free, or save a search to get notified when matching listings appear.
Get lease takeover alerts
Save your preferences and get notified when new listings match. Email alerts are rolling out soon; saved searches are available on your dashboard now.
No automated emails are sent yet. LookyLeasy is free to list and browse; leasing company and third-party fees may apply.
Car lease transfer guide
Overview of how lease transfers work.
Buyer guide
Know what to ask before assuming a lease.
Seller guide
Prepare a clear listing and verify transfer details.
Fraud prevention
Review red flags before sending money or documents.
Transfer fees
Common fees and questions for buyers and sellers.
Take over a car lease
Buyer-focused steps for assuming a lease.
Ready to list your lease?
Create a free listing and help buyers discover your lease takeover opportunity.