BMW Lease Terms to Familiarize Yourself With

Thinking of leasing your next BMW car or SUV? If the leasing process is something you’re unfamiliar with, we suggest reviewing these terms to feel more confident about securing a BMW lease at BMW of Wesley Chapel.

Adjusted Capitalized Cost

Also known as net cost, this is the total amount that your payments are based on.

Capitalized Cost Reduction

This is the amount you pay upfront (known as a down payment when financing).

Closed-End Lease

This is the most common type of lease. With it, you don’t owe the difference if your vehicle’s actual value ends up being less than its predetermined residual value.

Depreciation

Your vehicle’s loss of value during your lease is known as depreciation.

Early Termination

If you decide to end your lease before your predetermined term is up, it’s known as an early termination. You will owe a fee if you choose to do so.

Excess Mileage Charge

When you first sign a lease, you will agree to a yearly mileage. If you exceed the allotment, you will owe an excess mileage charge.

GAP Insurance

Guaranteed Asset Protection (GAP) insurance protects you if your vehicle is totaled, lost, or stolen, and you still owe more on the vehicle than it’s worth.

Money Factor

This fee (typically displayed as a decimal) is similar to an interest rate and is the fee you owe your lender.

Purchase Option

If you want to buy your vehicle at the end of your lease, you must have a purchase option included in your lease contract.

Residual Value

The projected value of your vehicle at the end of your lease is known as its residual value.

Learn More About Your BMW Lease in Wesley Chapel, FL

Do you still have questions about the leasing process? Contact our team at BMW of Wesley Chapel to answer any questions you may have. We’re waiting to get you behind the wheel of a BMW luxury car today!