An educated customer can make the best choice for themselves. This glossary of leasing terms helps you understand the benefits of leasing a car. And, the RK sales staff is available to answer any questions you have. RK Toyota Virginia / RK Scion Glossary: Helpful terms for new car leases to help you make a better leasing decision.
- Allowable Mileage: The number of miles each year that you can drive. Overages result in additional fees.
- Buyout Amount: The cost to purchase the vehicle.
- Capitalized Cost: The vehicle’s negotiated price.
- Drive-off Fees: A down payment of sorts to begin new car leases; includes applicable fees and surcharges.
- Lease Factor: Interest rate outlined in lease agreement.
- Residual Value: The vehicle’s value at the end of the lease.
- Lease Sales Tax: One of the benefits of leasing a car – only the value of the vehicle’s value that you use is taxed – you don’t pay taxes on the vehicle’s total value.
- Security Deposit: Required and usually equals roughly one monthly lease payment.
- Subsidized Lease: Manufacturers’ special incentives make these the best of the best car leases, they often have low interest rates or a lower monthly lease payment.
Important things to consider at the end of new car leases help you make your best leasing choice.
- Depreciation: The difference between the capitalized cost and the vehicle’s value at the end of the lease.
- Early Termination: Ending your lease contract early typically requires that you pay off your lease and applicable fees.
- Excess Wear and Tear: Wear and tear beyond what it seemed reasonable by the lease agreement.
- Residual Value: The vehicle’s value at the end of the lease.
- Term: Typical lease agreement terms are 24, 36, 48 and 60 months.
RK Toyota Virginia / RK Scion are your first stop to understand if an auto lease is right for you.
Stop in to RK Auto Group today for more information about the benefits of leasing a car, SUV or truck and to see what’s new!
