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When first time car buyers go to a Tennessee Nissan dealership to lease a car, they generally don’t know many of the words that the Tennessee Nissan dealership uses, or terms that are on the lease contract. This lease glossary will give you definitions of many of the words that are on lease contracts and that will make your leasing experience at your Nissan Tennessee dealership much more pleasant.
Capitalized Cost
This is a term that is generally on your lease contract. This is the sale price of your vehicle. These capitalized costs can be reduced by trade-ins, and by making down payments.
Closed-end Lease
In this type of lease, the person leasing the car is responsible for the value of the car at the end of the leasing period. So, if at the end of your lease, your vehicle is not in great condition, it is your responsibility to get the vehicle in great condition.
Default Charges
This is a charge generally made by your financing company. If you make a monthly payment on your car late, this is called defaulting. When you do this, you have to pay a fee.
Early Termination Charge
This is something that you are charged if you end your lease early. Your Nissan Tennessee dealership is counting on their car back at the end of the lease term, so if you return your car late the dealership may suffer.
Excessive Wear Charge
If your car is in less than optimum condition at the end of your lease period and you don’t have a closed-end lease, you have to have the Nissan dealership repair the car.
Gap Insurance
This is a very important kind of insurance that all cars should have. If your car gets stolen or if your car gets in a major accident, the difference in what you owe on the car and the worth of the car is the “gap”. Gap insurance pays for the gap.
Lessee
The person who leases the car from the Nissan Tennessee dealership.
Lessor
The lessor is generally the Tennessee Nissan dealership. They are the ones
that lease you the car, hence they are the lessor.
Mileage Charges
A mileage charge is a fee you have to pay if you go over the specified mileage limit on your car. Your car can be leased at 13,000, 15,000, or 18,000 mile limits per year, generally for 36 months. If you go over this limit, you have to pay charges. These limits are set so that Nissan dealerships can sell the car used at reasonable mileages.
Open-Ended Lease
In this type of lease, the customer pays the difference between the anticipated residual value and the market value of your car at the end of its lease term. Residual Value- The anticipated value of the car at the end of the lease is the residual value. Generally, this goes down because all cars use value over time- this is called depreciation. If your car is worth more than the residual value, you pocket the difference!
Purchase Option
This is a clause in leasing contracts that says you have the option to buy the leased vehicle at the end of the lease term.
These terms above should cover all of the terms that you may not know for when you go to lease your new (%make) car from the Tennessee dealership.
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