Down payment (sometimess advance payment or deposit) is an extraordinary and increased financial payment, which is paid at the beginning of the repayment period.
What is the down payment for?
Deposit is most commonly used for financial leasing as a special payment at the beginning. Its size varies in practice greatly range from 0% to 80%. The most typical down payment is between 30% and 60%. The reason of downpayment is to ensure the legal rights of the creditor in case of early termination of the lease contract. The down payment amount then reduce regular monthly payments.
Many financial services providers offering so called Zero down payment - the borrower then pays equal and monthly payments throughout the entire repayment period.