Signing lease paperwork.pngWill you be leasing a Mazda car for the first time? This is a different transaction than financing, so it pays to know as much about the process as you can. You should start by getting to know these important Mazda lease terms.

Lease Term

How long do you want to lease your car? Whatever it is, this is the lease term. Generally, these are between 24 and 60 months.

Lease Factor

The lease factor is also known as the money factor, and it’s the interest you will pay on top of your lease payments. This is represented as a number with a lot of zeroes like this: 0.0030. Multiplying the lease factor by 2,400 will let you know what your rate will be.

Capitalized Cost

The capitalized (or cap) cost is the entire amount you agree to pay for your vehicle.

Capitalized Cost Reduction

As the name implies, this is anything that reduces the cap cost, which could include a trade-in vehicle.

Acquisition Fee

The acquisition fee is what you will be charged for the processing of the lease. This is typically pretty low.


This is the value of your leased vehicle at the end of the lease.


The depreciation is the loss of value your car will experience over the course of the lease period.

Gap Insurance

Gap insurance is something that will be included in the lease. This offers financial protection in the event that the car was stolen or totaled in an accident during the lease.

If you have any questions about leasing, contact Patrick Mazda in Auburn, MA. Or, just come down to our dealership to learn about our current lease offers.

Categories: Finance