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First & Last Payment

A common lease structure that collects the first and final payments up front.

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In short

First & last payment is a common lease structure where the first and final payments are collected up front instead of a traditional down payment. It reduces the cash needed at signing compared with a large down payment.

How it works

Rather than putting a percentage down, you pre-pay two of the lease payments at the start:

  • You pay the first payment and the last payment when you sign.
  • The final payment is already covered when the term ends.
  • It often requires less cash up front than a traditional down payment.
  • It's a common way to start a lease with lower initial outlay.

Why lenders use it

Collecting the last payment up front gives the lender security while keeping your initial cash requirement modest. For you, it's a predictable, low-barrier way to get into a lease — useful when you'd rather preserve working capital than tie up a large down payment. Confirm exactly which payments are collected and how they apply so there are no surprises at term-end.

Common questions

Is first & last the same as a down payment?

Not quite. A down payment reduces the amount financed; first & last pre-pays two lease payments up front. First & last often requires less cash to start.

Do I still make a payment at the end of the term?

No — the final payment was collected at signing, so the last scheduled payment is already covered.

General information only. This page is educational and does not constitute financial, legal, or tax advice. All financing is subject to credit review and lender approval. Rates, terms, and eligibility vary by applicant, asset, and lender, and are not guaranteed. Any figures or examples are illustrative. Please speak with a qualified advisor about your specific situation.