Lately, we’ve seeing more interest in one-pay leases.

As with traditional monthly leases, there are pros and cons to choosing a one-pay lease. Let’s dive into what makes one-pay leases special and the situations in which it’s beneficial!

What is it?

A one-pay lease works the same as a traditional lease except for one big difference. Instead of paying each month, you pay the entire cost upfront.

Why consider it?

The benefit of a one-pay lease is that you get a discounted money factor, saving you on finance charges. (In case you don’t know what money factor is, it’s essentially the interest rate on a lease.)

How much does it save?

Let’s use a reader’s recent 2024 Chevrolet Blazer EV lease deal through GM Financial as an example. The Blazer EV is a vehicle we’ve recently featured as having an excellent lease program.

As a regular monthly lease, this deal would have cost $348/month, which equates to about $8,000 over the course of a 24-month lease.

By contrast, a one-pay lease costs about $7,000 upfront, with no monthly payment. If you average out the cost, this equates to $289/month.

In total, our reader saved about $1,000 going with a one-pay lease, which equates to $44/month saved. The savings are due to a money factor discount of .00042, or 1% APR, that GM Financial provides on a one-pay lease.

Are there downsides?

One major barrier is that you’ll need a good amount of money saved upfront to pay for a one-pay lease.

Even if you do, there’s always the opportunity cost to consider. By paying the entire lease upfront, you may lose out on potential returns on investment that you could otherwise earn with that amount of capital.

We find that one-pay leases offer the most benefit for shorter terms, such as 12 or 24 months, and for leases that aren’t too expensive to begin with. With a cheap one-pay lease, you might even be able to use a credit card to pay the entire amount, earning you points. 

What if the car is totaled?

This depends on the lender. With GM Financial, for example, GAP insurance is included, and the one-pay is prorated. This means that if the car is totaled, GM Financial will refund you the remaining balance.

Note this is different from a down payment on a regular lease, which you could lose in a total loss. A big down payment on a lease is rarely a good idea.

What brands offer a one-pay lease?

The following automakers offer a one-pay lease through their captive lenders:

• Acura

• Alfa Romeo

• Audi

• BMW

• Buick

• Cadillac

• Chevrolet

• Chrysler

• Dodge

• FIAT

• Genesis

• GMC

• Honda

• Hyundai

• INFINITI

• Jeep

• Kia

• Lexus

• Maserati

• Mercedes-Benz

• MINI

• Mitsubishi

• Nissan

• Porsche

• RAM

• Subaru

• Toyota

• Volkswagen

To see how much a one-pay lease could save you, use our Rate Findr tool, which has one-pay lease program data for each of these automakers.