Purchasing a car is a pretty straightforward and relatively simple process. Leasing, on the other hand, can be a bit more complicated. This is why if you are considering a Mazda lease, it pays to familiarize yourself with the terms you will encounter, and Patrick Mazda wants to help with this glossary
Lease Term
The lease term is its length. It’s important to figure out how long you want to lease your vehicle. Generally, these start at 12 months and can go up to 60 months, but 36 months (three years) is the most popular.
Money Factor
When you lease a car, your monthly payments will come with interest. This is called the money factor, which is represented by a number that has a lot of zeroes. For example, you may see a money factor of 0.0025. Multiplying this by 2,400 will let you know what the interest percentage is, and in this case, it is six.
Cap Cost and Cap Cost Reduction
The cap cost (or capitalized cost) is the total amount of the lease. This includes all costs, including additional fees or charges. The cap cost reduction is anything that lowers the cap cost, such as incentives or a trade-in vehicle.
GAP Insurance
GAP (guaranteed asset protection) insurance is required with a lease, protecting you as well as the leasing company. In the event of a severe accident, this will allow you to be covered for financial damages. You’ll be able to get the insurance money you need to pay for the vehicle even if you owe more than it is worth.
Find the Perfect MAZDA Lease in Auburn, MA
Now that you know the terms, it’s time to find the right Mazda car to lease. Visit Patrick Mazda to check out the vehicles in stock. If you have any questions, feel free to get in touch.
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