Lease facts
When you lease a vehicle, who owns it?
Financial institution (lessor)
What is an acquisition fee?
A fee charged by the lessor to begin a lease.
What is indemnity?
A lease contract provision that absolves the lessor from charges incurred by the lessee. (things such as parking or traffic tickets)
Why lease?
Lower payment, get into a newer vehicle every few years, to take advantage of the latest and greatest technology, under warranty the entire lease term (assuming no mileage penalties)
How many leases are being offered on your website currently?
Toyota--63
Chevy--0
CDJR--0 currently updating offers
What all can be included in the "up-front costs"?
1st payment, refundable security deposit, acquisition fee, down payment, taxes, registration and other fees(processing fee)
What is capitalized cost reduction?
A down payment or any other type of reduction to the capitalized cost such as a rebate or a trade in allowance.
What is a lease fee?
The cost of leasing a vehicle, excluding the depreciation, is based on the money factor.
If I decide to buy my vehicle at the end of the lease term, what will I have to pay?
The residual value discloses the vehicle's cost to purchase up front.
Does your website have a section "Buy v Lease"?
Toyota--no
Chevy--no
CDJR--no
What are the options at the end of the lease terms?
buy, trade, sell (make payoff), or turn-in and walk away
What is a closed-end lease?
One where you know up front what you can buy it for at the end of the lease term.
Which finance product is often included in the lease?
GAP insurance
If I buy my vehicle at the end of the lease term, will I have to pay taxes and fees (including processing fee)?
If you buy it from the same dealership you will not have to pay taxes again in Virginia. Also, it is not legal to charge processing fee on the 2nd transaction. The only fees you will have to pay for is a state inspection, tag/title fees.
Does your website have a payment calculator?
Toyota--yes
Chevy--yes
CDJR--yes
Which end of lease option is subject to "excessive wear and tear"?
turn-in and walk away
What is adjusted capitalized cost?
The final amount on which lease payments are calculated.
Name the two tools used in a subvented lease.
raising the residual value or lowering the money factor
Can I accessorize my vehicle if I lease it?
Yes. There is a residual schedule for accessories.
When is the best time to start talking to a customer about leasing?
Early in your conversation. It's too late if you work up a purchase scenario and they tell you the payment is too high
What is depreciation in a lease contract?
The amount of total payments over the term of the lease ( 24 or 36 ) months
What is gross capitalized cost?
A leased vehicle's negotiated purchase price plus any other items the lessee chooses to fold into the lease and pay over time, rather than up-front.
What is the name of the Federal Reserve Board's Consumer Leasing Act, which requires the disclosure of all leasing costs?
Regulation M
What is my exposure if I exceed my mileage limitations?
Mileage overage charges vary from 10 cents a mile to 40 cents a mile
How many leases did your store do in May?
Toyota--7
Chevy--1
CDJR--1