When it comes to jargon, the auto industry certainly has its fair share, and often, this puts customers at a disadvantage. Leasing especially is full of terminology that can be confusing. If you’re planning on getting a Jaguar lease, here are seven terms you should know when you visit Jaguar Northfield.
Lease Term
A lease term is its length, and these can be short or long. Generally, they start at 24 months and go up to 60 months.
Capitalized Cost
The capitalized cost – which is also known as the ‘cap cost’ – is the total amount of money you agree to pay for your Jaguar lease.
Capitalized Cost Reduction
This is anything that can cut the cap cost, such as trading-in your old vehicle.
Money Factor
The money factor is the interest you will pay on your lease. This will look like a number like this: 0.0020. Multiplying that by 2,400 will let you see what this equates to as a regular percentage.
Residual and Depreciation
The residual is the value of your Jaguar car at the end of the lease. The depreciation is the vehicle’s loss in value.
Gap Insurance
Gap insurance provides coverage in the event that your car becomes a total loss if it’s stolen or totaled in an accident. If there’s a gap between what the car is worth and what you owe on it, this insurance will cover it.
Get All of Your Leasing Questions Answered at Jaguar Northfield
If you have any questions or concerns about leasing, get in touch with Jaguar Northfield. And if you’ve got your eye on a certain model, we can send one out to your home for a remote test drive. Contact us today!
