Leasing Terminology to Familiarize Yourself With
When you buy a car, the process is relatively straightforward and usually not that complicated. With leasing, however, things can get a little more complex. If you will soon be looking into a Maserati lease, it’s a good idea to be familiar with the terms you will encounter. Here Zeigler Maserati aims to help with this glossary.
Lease Term
One of the first things to think with leasing is how long you want to lease your new Maserati vehicle for. This is the term. These typically start at a year and may be as long as five years.
Money Factor
Your lease payments will come with interest, and this is the money factor. This will be represented by a number that looks like this: 0.0025. Multiplying that by 2,400 will let you know what you will be paying.
Capitalized Cost
The capitalized cost (or cap cost) is the total amount you will pay for your lease. This includes upfront fees, extended service plans, and anything else that may affect the total cost.
Capitalized Cost Reduction
The cap cost reduction is anything that could be used to lower the cap cost. If you have an older vehicle that you’re looking to trade in, its value could go a long way to reducing the cap cost.
Residual and Depreciation
Before you sign your lease, the value of the car when the lease comes to an end will be calculated. This is the residual. In order to come up with the calculation, depreciation is a big factor, and this is its loss in value.
Gap Insurance
Dealerships need to protect their vehicles, which is why gap insurance is required when leasing. It will protect you as well. If you get into an accident and the car is totaled, you may owe more money than it’s worth. Gap insurance will fill in that gap so you won’t have to take any money out of your pocket.
Zeigler Maserati Want to Make the Leasing Process Simple
If you have any concerns or questions about leasing, get in touch with our Maserati dealership in Schaumburg, IL. We can also let you know about our current lease offers. Plus, you can schedule a test drive and have a vehicle waiting for you.
