BMW Lease Terms to Familiarize Yourself With

Buying a BMW car has its advantages, but so does leasing, too. In fact, it may even be more beneficial for some drivers, as you get to drive a fantastic vehicle without being tied to it financially for a long time. With the BMW lease process comes different terms and phrases to understand, though. BMW of Wesley Chapel goes over some of the most common ones you’ll hear.

Term

The term refers to the length of your lease. It will be up to you to decide for how long you want to lease your vehicle. Typically, terms start at a year and go up by 12-month intervals to 60 months.

Money Factor

When you buy a car, interest compounds as you pay back the money you borrow. This also applies to leasing, but in this scenario, it’s referred to as the money factor. What may be confusing is the way it’s represented, as you will see a number that looks like this: 0.0030. Multiplying that by 2,400 – which in this instance, comes out to 7.2 – will let you know what your rate will be.

Cap Cost and Cap Cost Reduction

The total amount you pay for the lease, including all upfront fees, is the cap cost. Anything used to cut this is the cap cost reduction – for example, if you trade in a vehicle.

Residual and Depreciation

Before you drive off in your leased BMW car, its value at the end of the lease will be calculated. This value is known as the residual. However much the vehicle’s value goes down from the start of your lease to the end of its term is the depreciation.

Find Your BMW Lease in Wesley Chapel, FL

Now that you know more about leasing, you may be ready to get the process started. Visit BMW of Wesley Chapel to check out all of our models in stock. While you’re here, we can also help answer any lingering questions you may have about leasing.