You have begun searching online and reading up on information in leasing your first car? Unfamiliar terms can begin to sway your decision. Not to worry, here is a sneak peek at common leasing terms you will come across in your research and what they mean.
Dealer Participation: Amount dealer contributes to lower the total price of the vehicle
Depreciation: The value amount a vehicle loses over a specific period of time, or the difference between original price and residual value.
Disposition Fee: Amount paid at end of lease term, covering costs to prepare the returned vehicle for sale.
Lease Assumption: Refers to an outside party taking over a lease from the original lessee under the terms and conditions outlined in the original contract.
Lease-End Buyout: This is the originally contracted amount that the lessee can purchase the leased vehicle for at scheduled lease termination. This figure consists of the Residual Value plus the Purchase Option Fee if applicable.
Residual Value: Estimate worth of a vehicle as it ages, represented as a percentage of its original price.
Now that you have an idea of what you need, preparing to lease a car should be a little easier.
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