Signing a Mazda lease is an excellent option for Asheville, NC drivers looking to enjoy the newest Mazda models without the commitment of buying. However, understanding the terminology and specific Mazda lease terms involved with your agreement is crucial to making informed decisions. These are five key Mazda lease terms to help you navigate your contract.
Capitalized Cost (Cap Cost)
Also known as cap cost, capitalized cost is the negotiated price of the vehicle you are leasing. You can think of this number being similar to the purchase price if you were buying or financing a new vehicle. A lower capitalized cost translates to lower monthly payments.
Residual Value
The residual value is the estimated value of the vehicle at the end of the lease term. If your car has a higher residual value, this means lower monthly payments because lessees only the pay for vehicle’s depreciation during the lease term.
Money Factor
This is the interest rate used to calculate your monthly payment. The number is expressed as a decimal and can be converted to an annual percentage rate for easier comparison. A lower money factor translates to lower monthly payments.
Mileage Allowance
Unlike buying a car outright, leasing involves a mileage allowance. This is the maximum number of miles that you can drive annually without incurring excess mileage charges.
Wear and Tear Charge
Another charge that is unique to leases is the wear and tear charge. The exact terms of this charge will vary from lease to lease, but generally, if your car incurs more damage than indicated in the lease terms, you will be charged.
Lease a New MAZDA Car in Asheville, NC
Now that you know the most common Mazda lease terms, visit Fields Mazda of Asheville to get the ball rolling on your Mazda lease. Stop by today for a test drive!
