Auto Leasing Lyndhurst, NJ
VIP Auto Group is now providing our award winning leasing solutions in the Lyndhurst, NJ area and nationwide. Our state of the art national inventory access system basically gives you access to every possible lease type of any make and model you desire at the lowest prices, guaranteed. What that really means is that the best leasing deals in Jersey are just a quick click or call away.
Common Lease Terms You Need To Understand Before Leasing A Vehicle
Mileage Allowance
The mileage allowance sometimes referred to in a car lease as yearly mileage or total cumulative mileage is the number of miles you can drive during the term of your lease. You can, in most cases, get the number of miles you can drive increased for an additional fee.
Should go over the agreed upon mileage allowance you will most likely end up paying 15 to 25 cents for every mile you drive over the limited.
Acquisition Fee
Adjusted Capital Cost
Capital Cost Reduction
Money Factor
The money factor can be difficult for most people to understand. The money factor is a fractional number that is used to calculate the lease fee or charge. The money factor is not an interest rate, but is based on a formula that the lessors use to determine their profit.
Lessors don’t have to reveal the money factor to you the lessee. But as a lessee you can insist on knowing what the money factor is before you sign the lease agreement.
You can use the money factor to estimate the annual percentage rate by multiplying the money factor by 2400. Keep in mind if you the car manufacturer is running a special that the money factor can drop to an extremely low fraction such as .00001.
Residual Value
All vehicles depreciate in value year by year. Some vehicles depreciate at faster rate than others. The residual value of the car is the car’s value at the end of the lease. The leasing company sets this value before the car is ever offered for leasing.
The higher the residual value the smaller your monthly lease payments should be.
Disposition Charge
The disposition charge is an amount set by the leasing company to clean and sell the car after the lease is completed. Make sure that the disposition charge is set in the lease agreement to prevent this fee from changing once your lease is complete.
When you understand all of these terms of your car lease, you will know how much the overall cost of your lease prior to signing the agreement.