{"id":355537,"date":"2018-04-06T19:53:57","date_gmt":"2018-04-06T18:53:57","guid":{"rendered":"http:\/\/rinf.com\/alt-news\/newswire\/car-leasing-has-its-own-language\/"},"modified":"2018-04-06T19:53:57","modified_gmt":"2018-04-06T18:53:57","slug":"car-leasing-has-its-own-language","status":"publish","type":"post","link":"http:\/\/rinf.com\/alt-news\/newswire\/car-leasing-has-its-own-language\/","title":{"rendered":"Car Leasing Has Its Own Language"},"content":{"rendered":"
\n\t\t\t\t\t\t\t \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n

We had a caller last weekend who was confused about residual values on a lease, and whether that amount could be negotiated at the beginning or end of the lease.<\/span><\/p>\n

One of the problems with the car business is that it has its own language, and often people in the car business use their internal terms when talking to consumers.\u00a0\u00a0Most people today know that\u00a0\u201cupside down\u201d<\/a>\u00a0means they owe more on their car than its value, but not too many years ago, it was a bit of a mystery term.<\/span><\/p>\n

Car leasing has a language all its own, too.\u00a0\u00a0I am going to give you some of the most common leasing terms and translate them into the simplest explanation.<\/span><\/p>\n

\u00a01. Mileage Allowance:\u00a0<\/span><\/strong><\/p>\n

This is the number of miles you can drive during the lease period without penalty.\u00a0\u00a0<\/span>It is stated in terms of monthly allowance, or the total cumulative mileage.\u00a0\u00a0<\/span>Typical penalties if you go over the allowance are 15-20 cents per mile.<\/p>\n

2. Acquisition Fee:<\/strong>\u00a0<\/span><\/b><\/p>\n


\n\"\"<\/a><\/span><\/span>
\nDonu2019t Get Taken Ev…<\/a><\/span><\/span>
\nRemar Sutton<\/span>
\nBest Price: <\/span>$26.00<\/span><\/span>
\nBuy New <\/span>$84.55<\/span><\/span>
\n(as of 02:25 EDT – Details<\/span>)<\/span><\/span>
\n<\/a><\/span>
\n<\/span><\/p>\n

This is a fee charged by leasing companies and banks to cover various costs of administering the lease terms.\u00a0\u00a0<\/span>They average about $400 and are very seldom negotiable.<\/p>\n

3. Adjusted Capitalized Cost:<\/strong>\u00a0<\/span><\/b><\/p>\n

Simply put, this is the amount you are financing in the lease or the bottom line.\u00a0\u00a0<\/span>This is the cost of the car you are leasing, including the tax, title, and license, minus any down payment, trade allowance, or rebates.<\/p>\n

4. Capitalized Cost Reduction<\/strong>:\u00a0<\/span><\/span><\/p>\n

A down payment or other credit that lowers the capitalized cost of a lease. The down payment may come in the form of cash and\/or a rebate, trade-in allowance or other credit.<\/p>\n

5. Closed-end lease:<\/strong>\u00a0<\/span><\/p>\n

A lease that doesn\u2019t require the consumer to buy the vehicle at the end of…<\/p>\n<\/div>\n

Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

We had a caller last weekend who was confused about residual values on a lease, and whether that amount could be negotiated at the beginning or end of the lease. One of the problems with the car business is that it has its own language, and often people in the car business use their internal […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[519],"tags":[],"class_list":{"0":"post-355537","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-newswire"},"_links":{"self":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/355537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/comments?post=355537"}],"version-history":[{"count":0,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/355537\/revisions"}],"wp:attachment":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media?parent=355537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/categories?post=355537"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/tags?post=355537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}