Glossary of MAZDA Lease Terms

A lot of drivers are familiar with the financing process for a new vehicle and how to obtain a loan. The same isn’t always true, however, with a Mazda lease, which has a full range of different terminology to know. The team at Route 9 Mazda has put together this glossary designed to help you out with your leasing journey.

Term

The lease term is the duration of your lease. When deciding how long this should be, you have a lot of flexibility. Generally, a lease term can be as short as one year or as long as five, and you can pick any 12-month period between the two.

Money Factor

When planning to lease a new Mazda model, you will see the money factor referenced fairly often. Essentially, the money factor is the interest you will pay on top of your lease payments. What can be tricky about this is that it’s not as clear as the interest you would pay when you finance. The money factor will involve a number that looks something like this: 0.00250. To figure out the percentage rate you will be paying, you just need to multiply that by 2,400, which comes out to 6%.

Capitalized Cost

The capitalized (or cap) cost is the amount you agree to pay for your lease. Along with the value of the vehicle, this includes any fees, taxes, or anything extra you want to add, like extended warranties or paint protection.

Capitalized Cost Reduction

The cap cost reduction is sometimes referred to as a down payment, and it includes anything you supply upfront to lower the cap cost. A trade-in vehicle is a good way to lower your leasing expenses.

Residual and Depreciation

The value of your vehicle at the end of your lease will be calculated at the very beginning of the lease. This value is known as the residual. The depreciation is how much the vehicle’s value decreases over the life of the lease. This happens due to a number of factors, including age, mileage, and wear and tear.

Find Expert Support for Your MAZDA Lease

We understand that leasing can be difficult to navigation, especially if you’ve never done it before. If you would like more information about the terms above or have any questions, contact our Mazda dealership in Poughkeepsie, NY. We can also let you know about the latest lease offers and explore other Mazda finance options.