Common Mazda Lease Terms You Should Know 

Starting the Mazda lease process can be exciting, but it’s important that you’re up-to-date with several terms that may float around during discussions. Understanding terms such as a closed-end lease or acquisition fee is important for ensuring everyone is on the same page. Before you start the leasing process for a new Mazda vehicle, take a look at these common lease terms you’ll want to know.

Acquisition Fee

An acquisition fee refers to the administrative expenses that are generated when arranging a loan or lease agreement.

Adjusted Capitalized Cost

This is the total amount on which the monthly lease payments are based. It includes factors such as vehicle cost, fees, and charges that are not paid upon the initial formation of the lease.

Closed-End Lease

This type of lease means a consumer does not owe the difference in the value of their car by the end of an agreement if its value has depreciated.

Depreciation

It’s common for the value of a vehicle to gradually decline as you drive it for the duration of your lease. This is referred to as depreciation and is calculated as the difference in a vehicle’s capitalized cost and residual value.

Excess Wear-and-Tear Fee

When damage to a leased vehicle exceeds what is considered normal usage then this fee is applied. It often encompasses both interior and exterior damages that can be repaired at our Mazda service center.

GAP Coverage

Guaranteed Auto Protection (GAP) coverage makes up the difference in cost if your car is stolen or destroyed with an outstanding balance on your current lease. It should be noted that this difference is only calculated after it’s determined that your insurance company will not reimburse you for the full cost of damages.

Residual Value

This refers to the estimated value of a vehicle at the end of a lease. This will be determined when you form your lease and will factor into the calculations for your base monthly payment. Residual value is deducted from the adjusted capitalized cost to determine what the deprecation rate will be.

Explore Your MAZDA Lease Options At El Dorado Mazda in McKinney, TX

Our Mazda finance center is staffed by a team of friendly professionals who will do their best to create the best leasing offers available. El Dorado Mazda has plenty of new and used vehicles to browse from, so come give us a visit and we will help you find the right one for your needs!