D.A.S. versus Down Payment | Car Sales Explained

In the automotive industry, there are a lot of words and phrases only used in the car buying or leasing process – making it tricky to understand everything. Alfa Romeo of Seattle strives to be clear in the purchase or leasing process and wants to make sure our clients are making informed decisions.

Let’s talk: DAS (due at signing) VS down payment (leasing)
DAS, short for “due at signing”, and a down payment are both terms that pop up when it comes to leasing. Leasing a vehicle can be thought of as a long-term car rental with expected behaviors (like a mileage cap and vehicle condition), for a set time and where at the end of the lease term you return the vehicle to the financial institute from the contract. Alternatively at the end of a lease, you have the option to buy your leased vehicle for the predetermined value and own the vehicle. With a lease, just like a purchase, you negotiate a Selling Price up front, then the lease is calculated from that starting point.

• A Down Payment is the agreed upon amount you pay to reduce the selling price of the vehicle for a lease. It can also be called a capitalized (cap) cost reduction.
• The Due at Signing is the total amount you pay at time of signing a lease. This can include combinations of a down payment ( cap cost reduction), taxes, license fees, document fee, acquisition fee,, and the first month payment. This can also be called what you pay “out the door.”

Example:
A New 2024 Alfa Romeo Giulia Sprint AWD has an MSRP of $47,280.

With a $0 Down Payment, the selling price has not changed. The amount Due at Signing would then include the $200 document fee, $619 1st month payment (monthly use tax included), and $837 registration fees for a total of $1,656.

With a $4,000 Down Payment, the selling price is lowered by the $4,000. The amount Due at Signing would then include the $4,000 down payment, a $200 document fee, $509 1st month payment (monthly use tax included), $837 registration fees, and cap cost reduction tax of $426, for a total of $5,972 total cash due at signing.

Manufacturer Rebates and Incentives are used to reduce the selling price (Capitalized Cost) and is just like an additional down payment. They will also be taxed as Cap Reduction Tax.

Examples given are not representative of active offers. Please visit our New Vehicle Specials for up to date offers and conditions.