BMW Lease Terms to Know
If you are looking for an alternative to outright buying your next BMW, you may want to consider a BMW lease. This is a great option if you want to save a little money on your monthly payments and enjoy upgrading your vehicle often. With so many exciting BMW models to drive, these are great solutions.
We at Serra BMW of Champaign understand that the terminology, however, can be a bit different when considering a lease. Here’s a quick lease vocab guide.
Close up of a keyboard with a Leasing concept.
Adjusted Capitalized Cost
The total amount you will pay on your leased vehicle based on lease payments, and any fees not paid upfront. This is adjusted to reflect your trade-in value and down payment.
Base Monthly Payment
What you owe every month, not including taxes and fees.
Depreciation
Even BMW vehicles are worth less after use than when new. Depreciation is the charge to cover the projected decline in value throughout the terms of the lease. It is used to calculate your monthly payments.
Excess Mileage Fee
If you go over the agreed-upon mileage during the lease, this is the fee you will be charged on every mile above that set cap.
Excess Wear and Tear Fee
Some wear and tear is expected. But beyond what is considered normal, this fee will be charged for that damage.
GAP Coverage
Guaranteed Auto Protection (GAP) coverage is to make up for any difference in what you owe in the event of your vehicle being stolen or destroyed in an accident.
Gross Capitalized Cost
This is the vehicle price without all of the fees and other factors. This is the negotiated price of the vehicle you are leasing.
Mileage Allowance
The cap on the number of miles you agree to drive during the term of your lease.
Purchase Option
A clause in the lease agreement that gives you the option of buying your leased vehicle when the lease is over.
Test Drive a New BMW in Savoy, IL Today
See if a lease is right be coming down to your Savoy, IL BMW dealership and test driving a new BMW today. While here, our expert BMW financial center staff can help you go over all of your lease options, as well as your trade-in and down payment. We look forward to helping you!