We know that wading through the financial waters when purchasing or leasing a new vehicle can be a challenge. To help make the financing process significantly easier, Larry Jay Mitsubishi has put together a list of the most-used finance terms. As you go through the process, make sure you keep an eye out for these key words:
Down Payment: A down payment is an agreed-upon amount paid at time of purchase that is subtracted from the total cash price. It’s not necessarily cash but it can also be the value from a trade-in, a manufacturer rebate, or a combination of payment.
Capitalized Cost Reduction: This is essentially the same as a down payment. The only difference is that the Capitalized Cost Reduction reduces the Gross Capitalized Cost of a lease.
Excess Wear: A certain amount of damage on a leased vehicle is considered normal, which is well-defined in the lease agreement. Anything that goes beyond that, such as a stained interior or broken headlight, is considered excess wear.
Mileage Allowance: The maximum mileage per year permitted by the lease agreement.
Planned Excess Mileage: If the lessee plans on exceeding the mileage allowance, he or she can tack that charge onto the monthly payment and pay less than the excess mileage fee assessed at contract termination.
Purchase Option: This is an amount that the lessee can pay to purchase the vehicle at the end of lease period. The amount is agreed upon at the time the lease is signed.
Standard Mileage: The Diamond Lease Plan contract defines standard mileage as 15,000 miles per year.
Stop in today to meet with our financial experts to find out what your options are for your new vehicle. We are located in Charlotte, NC and we are just a short drive from cities such as Belmont, Hickory, Huntersville, and many more!