If you’re looking into a Jeep® lease and you've never had one before, you probably have questions about how everything works. The first thing to do is to learn about some common terms that will come up during the process, including:
- Capitalized (cap) cost. The cap cost is the total amount of money you will agree to pay for a lease, which will determine how much your monthly payments will be.
- Capitalized cost reduction. To lower your monthly payments, you should try to cut the cap cost, and one way to do it is by using an old car as a trade-in.
- Money factor. The money factor – also known as the lease factor – is the interest rate on your lease. This is represented as a number like .0030. To translate this into a percentage, just multiply that by 2,400, which comes out to 7.2 percent.
- Term. The length of a loan is the term. Generally, these range from one to five years.
- Depreciation and residual. The depreciation is the amount of value your car loses over the course of your lease, and the residual is what the vehicle is worth when your lease agreement ends. These are important to keep an eye on, especially if there’s a chance that you may end up buying your car.
Learn Vital Leasing Information Today
With a lot of things to know, leasing can be complicated. At Fields Chrysler Jeep Dodge RAM Glenview, we want to make things as easy for you as possible. If you have any questions, contact us or come down to our dealership and talk to our sales professionals.
Categories:
Finance