If you’re getting ready to lease a car here at I.G. Burton Chrysler Dodge Jeep® RAM of Milford, we want to make sure that you have all of the information that you need. That’s why we’re ready to answer any questions that you might have and why we’ll explain some common Chrysler lease terms to you.
Here are some terms that you need to know before signing any paperwork.
Common Lease Terms
- Lessee: The person to whom the vehicle is leased, so that’s you. A lessor is the party that will lease the car to you, so that’s the dealership.
- Depreciation: This term describes the loss in value a car experiences over time. A new car starts to lose value once it’s left a dealers lot.
- GAP Coverage: This is a type of insurance coverage known as “guaranteed auto protection.” If your car is totaled or stolen and you owe more money on the lease than your insurance company will pay out, this covers the “gap.”
- Mileage Allowance: A lease agreement often limits how much you can drive over the course of the lease term. Going over can result in excess fees, which can really add up depending on your driving habit.
- Residual Value: This is how much the vehicle is projected to be worth at the end of your lease.
- Security Deposit: This is the amount you put down in case you default on the lease.
- Closed-End Lease: This is the usual type of lease agreement. At the end of a lease, you won’t have to pay the difference between the actual value of the car and the residual value, so no unexpected fees to worry about.
- Disposition Fee: This is the fee charged to cover the preparation needed to sell your vehicle to another driver at the end of your lease.
Lease a New Vehicle Today!
So if you’re in the market for a new vehicle, visit our Chrysler dealers in Milford, DE. We’ll help you get set up with a new car lease that works for you and your family. We hope to see you soon!