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A Simple Guide to Understand Car Leasing


With a better understanding of leasing a car, you can make an informed decision as well as saving money on a car lease. – PowerPoint PPT presentation

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Date added: 22 November 2019
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Provided by: worldwideautomobile
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Title: A Simple Guide to Understand Car Leasing

World Wide Automobile
  • Trade in your Vehicle hassle free

A Simple Guide to Understand Car Leasing
  • With a better understanding of leasing a car, you
    can make an informed decision as well as saving
    money on a car lease.

A Simple Guide to Understand Car Leasing
  • Leasing lets you drive your dream car. It is just
    like renting a car for a specific period. From
    luxury large SUVs to subcompact cars, you can
    lease almost any vehicle.
  • The leasing cost includes depreciation, interest,
    and fees. While it may seem a straightforward
    process, it can be just the tip of the iceberg as
    many things are included.
  • However, you can make the most of it if you know
    how to do it rightly, especially if you are a
  • Here we will educate you on the leasing process
    so that you can have a sense of how leasing a car

Leasing a Car vs. Buying a Carwhats the
  • Well, this is no brainer.
  • When you purchased a vehicle, you have to pay the
    entire price of the vehicle using cash, loan,
    exchange or a combination of all three.
  • Talking about car leasing, you have to pay for
    the difference between the vehicles price and
    its expected value at the end of the lease, along
    with fees and interest.
  • For example, the cost of a sedan is 50,000, and
    its supposed to be worth 40,000 after three
    years. Leasing it means you have to pay for the
    10,000 in expected depreciation with fees and
    interest. It simply means you are paying for the
    decreased value of a car over the leasing
    duration. Buying it means you have to pay the
    full 40,000 with fees and interest.
  • You have to return the vehicle to the dealership
    once the lease term is over. You wont be deemed
    as the owner of the vehicle as the title is with
    the leasing company. There will be certain rules
    or limits regarding the usage, mileage,
    maintenance, and condition of the vehicle.

Understanding the Important Car Leasing Terms
  • Car leasing can be confusing just because of its
    jargons that are different than terms associated
    with buying a car. Here are some important terms
    to know

  • Cap Cost Also known as the capitalized cost, it
    is the price of the vehicle. And you can
    negotiate this price just like you will while
    buying a car.
  • Cap Cost Reduction Anything that lowers the
    price of the vehicles is termed as a cap cost
    reduction. It can be the value of a trade-in,
    auto deal, or a down payment. Cap cost reductions
    reduce your monthly lease payments, the amount
    due at signing, or both.
  • Residual Value It is the estimated value of a
    car at the end of its lease or at the end of its
    useful life. The residual value is determined by
    independent companies who specialize in
    estimating the value of automobiles. It will be
    mentioned in your lease documents, though it
    cant be negotiable.

  • Lease Term It is the period of time the car is
    leased for. The typical lease lasts two to three
  • Money Factor Investopedia defines money factors
    as the financing charge a person will pay on a
    lease. It is similar to the interest rate paid on
    a loan, and it is also based on a customers
    credit score. It is commonly depicted as a very
    small decimal.
  • Simply put, it is the interest rate you pay
    during the lease term.
  • Security Deposit A security deposit is required
    by the leasing company to protect themselves in
    case of damaging, excessing the mileage or
    default on a contract. You will get your security
    deposit back if your lease doesnt include extra

  • Due at Signing This indicates that how much
    amount you have to pay while signing the lease
  • Mileage Cap It defines how many miles you can
    have on the car when you return it to the
  • Buyout Price It is the amount on which you
    purchase the car for at any time during the
  • Lessee The lessee is the person who leases the
    car from the company that is lessor.
  • So you must have understood how leasing a car
    works. At WWA, we provide your dream cars on
    lease, from Cadillac, Porsche, Ferrari to
    mid-range like Nissan and Toyota. Our leasing
    rates are flat, affordable and transparent.
    Waiting for you at one of the car dealerships in

Thank you ?
  • info_at_worldwideautomobile.com
  • (718) 748-2886
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