Important GMC Lease Terms to Know

Drivers looking for a simple and cost-effective way to improve their time on the road should look into a GMC lease. And if you have any questions about what leasing is and why it’s a great option, our GMC finance team is here to help.

Feel free to visit or contact us at LaFontaine Buick GMC Highland to learn more about important lease terms.

Important Lease Terms to Know
By familiarizing yourself with essential leasing terms, you can arrive at our lot more confident and better prepared to sign your lease.

  • Capitalized Cost: This is the final agreed-upon price of the vehicle after any negotiations or incentives. This value is very important since it determines your monthly payments during your lease.
  • Depreciation: This refers to the amount the car you’re leasing drops in value over time.
  • Residual: The residual is simply what the car is worth at the end of the lease, meaning the initial value of the car minus the amount it deprecated is the residual. During a lease, what you pay each month is based on the estimated residual value of the car.
  • Money Factor: This one can be confusing to many car-shoppers, but it’s actually pretty simple. The money factor is just another way of calculating the interest rate. You can figure out the interest rate of your lease by multiplying the money factor by 2,400. So a money factor of 0.0010 would translate to 2.4% interest.\\

Why Lease?

The list of reasons to lease a car is pretty long. It’s a great way to drive off in a brand new GMC vehicle you don’t have to be fully responsible for in terms of the asking price. You can simply make low payments on top of a relatively low down payment to enjoy all of the benefits of your vehicle.

While you don’t get to be the rightful owner of the car, the fact that your payments are based on the depreciation of the car means you’ll be getting a good value by enjoying the car while it’s new.

Plus, you can simply drop off your GMC lease at our Highland GMC dealership, or any authorized GMC dealership, once your lease is up and lease another vehicle – or simply head home. Or maybe you’ll be ready to buy. Contact us today to learn more!