Understanding important auto leasing and fleet leasing expressions
If you’ve been considering auto leasing, whether car leasing or fleet leasing – the process can sometimes be confusing. There are a multitude of car leasing terms that you need to know. Understanding common auto leasing terms will help you to fully understand car leasing, leasing agreements, payment terms, etc. Here are some key terms that you might want to learn before you decide on a lease.
Acquisition Fee: This is the cost of preparing your lease. This is an administrative fee that is included in every car lease. This fee is charged through car or fleet leasing companies and not car dealerships.
Amortized Amount: The amortized amount is the difference between the Residual value of the vehicle and the Net value of the leased vehicle.
Default: Default is a car leasing term that means if you fail to comply with your lease. If this occurs, certain circumstances are set out regarding your car lease.
Residual Value: Residual value is the estimated wholesale value of the car at the end of the leasing term.
Depreciation: Your car loses value over time depending on kilometres, car maintenance, re-sale value, etc. These are all factors or depreciation.
Excess km charge: When you’re dealing with auto leasing or fleet leasing, excess km charge may play a big role in your leasing terms. Excess km charge is the rate you will be charged in the event that you go over your allocated km limit per year of your car lease. The cost is usually a few cents per km over.
Excess wear and tear: This is a charge for any additional wear and tear that occurs when the car is leased. Excess wear and tear usually includes bald tires, damage to the body, torn interior, missing parts, damaged electronics, etc.
Auto leasing and fleet leasing can be a great alternative to owning. Be smart about car leasing by knowing common leasing terms, visiting online leasing companies and researching vehicles that coincide with your budget. Visit Leggat National Leasing http://www.leggatleasing.ca/ for more information on car leasing, auto leasing and fleet leasing. Leggat National Leasing is located in Burlington, Ontario and serves clients in Hamilton, Burlington, Oakville and the GTA.
Acquisition Fee: This is the cost of preparing your lease. This is an administrative fee that is included in every car lease. This fee is charged through car or fleet leasing companies and not car dealerships.
Amortized Amount: The amortized amount is the difference between the Residual value of the vehicle and the Net value of the leased vehicle.
Default: Default is a car leasing term that means if you fail to comply with your lease. If this occurs, certain circumstances are set out regarding your car lease.
Residual Value: Residual value is the estimated wholesale value of the car at the end of the leasing term.
Depreciation: Your car loses value over time depending on kilometres, car maintenance, re-sale value, etc. These are all factors or depreciation.
Excess km charge: When you’re dealing with auto leasing or fleet leasing, excess km charge may play a big role in your leasing terms. Excess km charge is the rate you will be charged in the event that you go over your allocated km limit per year of your car lease. The cost is usually a few cents per km over.
Excess wear and tear: This is a charge for any additional wear and tear that occurs when the car is leased. Excess wear and tear usually includes bald tires, damage to the body, torn interior, missing parts, damaged electronics, etc.
Auto leasing and fleet leasing can be a great alternative to owning. Be smart about car leasing by knowing common leasing terms, visiting online leasing companies and researching vehicles that coincide with your budget. Visit Leggat National Leasing http://www.leggatleasing.ca/ for more information on car leasing, auto leasing and fleet leasing. Leggat National Leasing is located in Burlington, Ontario and serves clients in Hamilton, Burlington, Oakville and the GTA.