Since leasing offers more flexibility, lower monthly payments, and the chance to drive the newest Toyota models as soon as they are released, it is frequently chosen over buying a Toyota model. Some of the terminologies may be confusing if you are new to leasing. Before signing that lease, you will need to get familiar with all the legal terms included in it, so you completely understand what you are getting into. Our Toyota dealer near Tustin sales team is here today to educate you on some of the most important lease terms and what they mean.
A term is the length of time you will be leasing the vehicle specified in the lease. Typically, your lease can last anywhere between 2 to 5 years. Your monthly payments will be less the longer your lease term, and it is not as pricey as taking out a loan to purchase a new vehicle.
The acquisition fee is used to pay costs like getting a credit report and confirming insurance coverage at Tustin car dealerships.
The money factor of a lease is comparable to an interest rate. The monetary component is symbolized by a number, like 0025. Multiply this number by 2,400 to get an interest rate more familiar to people.
A capitalized cost also referred to as cap cost, is the negotiated selling price of the vehicle plus any extra charges you may want to include in the monthly lease payment.
A base monthly payment includes finance charges, any amortized amounts, and depreciation. The monthly payment is calculated by adding the monthly sales/use taxes and other fees.
If you choose a closed-end lease, you will not be responsible for any difference if the vehicle's residual value at the end of the lease is lower than the car's actual value at any Tustin Toyota dealership.
Depreciation refers to how a car loses value over time; its current value will be lower than when you first leased it. Depreciation is the cost you incur as a result of this value loss.
An extra-mileage fee is a charge for mileage over the maximum allowed by the agreement, typically 10 to 25 cents per mile.
An excessive wear-and-tear fee will be charged for damage to a leased vehicle beyond normal wear and tear. Damage to the inside as well as the outside is typically covered.
Coverage for GAP (Guaranteed Auto Protection) is designated if your car is stolen or totaled and you owe more on the lease than your insurance company will pay to make the difference.
Early termination is when the lease is terminated, voluntarily or involuntarily, before the agreed-upon date. You usually have to pay an early termination fee.
The purchase option is your right to buy the vehicle at the end of your term.
Got more questions?
Our team of professionals can be trusted to be transparent with all of our customers. If you are interested in leasing one of the vehicles at our Toyota dealer near Tustin, give us a call right now to schedule an appointment! We are here for you seven days a week!
