When a Jeep® lease is in your future, there are some important terms you should familiarize yourself with. We invite you to explore Jeep leasing terms at Fields Chrysler Jeep® Dodge RAM Asheville. Knowledge is power, so let’s learn together.
Lease Factor or Money Factor
The lease factor, otherwise known as the money factor, refers to the interest rate (percentage) of your lease.
Lease Term
A lease term can range anywhere from one to five years. The term is the length of your loan or in this case, the length of your lease.
Capital Cost
This term refers to the total amount you will agree to pay for your Jeep for the entire term of the loan. This figure will dictate your monthly payments.
Capital Cost Reduction
To cut or reduce the capital cost (total cost) of your total payments over the term of the loan, you can offer a trade-in. If you have a vehicle you can offer as a trade, this will benefit you in the bottom line. The trade-in value is deducted from the total cost.
Depreciation and Residual
Throughout your lease, the value of the vehicle will decrease, this is known as depreciation. The residual refers to the value of your vehicle when the Jeep lease term ends. This is especially important if you intend to purchase your Jeep at the end of the lease term.
Learn More About Jeep Leasing in Asheville, NC
If you have never leased a vehicle before, it can be a daunting process. Understanding the terminology can help you have a more informed and enjoyable Jeep leasing experience. The financial experts at Fields Chrysler Jeep Dodge RAM Asheville are here to help you with all of your leasing needs. Stop by today and learn more!