It can feel overwhelming when you make the move to lease a car. There are several terms thrown around that directly affect just how much you pay and how long your lease lasts. That is why we put together this quick guide to Mazda lease terms.
Mileage Allowance
This is the maximum number of miles you can put on your leased vehicle per year without facing a penalty. 12,000 miles is fairly standard, but not the only option.
Money Factor (Interest Rate)
This is a fractional number used to calculate your lease fee.
Lessee
The one that agrees to the leased vehicle. In other words, this is you.
Lessor
The financial institution that grants the lease. The is sometimes the dealership, but more often than not it is a bank.
Early Termination
If you decide to end the lease before the term ends, you’ll incur a penalty.
Gap Insurance
Insurance to protect against unforeseen circumstances such as your leased vehicle being stolen or totaled.
Depreciation Fee
The amount of value the vehicle loses during the length of the lease. This is used to calculate the monthly payments.
Capitalized Cost Reduction
The amount in the form of a down payment, trade-in, or other credit that lowers the capitalized cost (or purchase price) of the lease.
Start Your MAZDA Lease Today
No matter if this is your first vehicle lease or your tenth, we’re here to help. Come down to our Fairless Hills Mazda Dealership and speak with our finance experts today. They can help get you set up with the perfect terms for your next ride. We look forward to helping!
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