If you’re thinking about signing a Lexus lease, it pays to do your research. If you’ve never leased a vehicle before, some of the terms might seem a little confusing at first glance.
At Keyes Lexus, we’ll clear up any confusion and make sure you know exactly what you’re getting into. Here are some common lease terms you should know.
Excess Mileage Charge
Leases limit how much you can drive each year, and going over that limit can result in an extra charge. Usually, this fee is around 10 to 25 cents and it can really add up, which is why it’s important to think seriously about how much you drive before signing your lease.
Depreciation is the decline in value that a vehicle experiences over time. The expected depreciation is factored into your lease and affects how much you may end up paying for your vehicle.
Sometimes called the “lease factor,” the money factor is the interest charge that’s part of your monthly payment. It’s often expressed as a decimal in your contract.
The lessor is the party that is leasing a car. In the same vein, the lessee is the person to whom a car is leased.
GAP stands for Guaranteed Auto Protection. This is a type of insurance coverage that protects you if your car is stolen or totaled. If you owe more money on the car than it is currently worth, this covers that gap and pays out to the lessor of the vehicle.
Lease a New Lexus Car Today
If you’re in the market for a new luxury car, visit our Lexus dealers in Van Nuys. We’ll help you take advantage of the latest lease offers so you can get behind the wheel of a stylish car or crossover in no time!