Glossary of MINI Lease Terms

Every industry has its own jargon, and the automotive sector is no exception. If you are planning to get a MINI lease and this will be your first time, you are going to come across a variety of terms that may be unfamiliar. This glossary from MINI of Wesley Chapel aims to help explain them.

What you need to know about MINI leases in Wesley Chapel

Term

One of the first things to think about with a lease is how long you want it to be. This is the term. Lease terms usually start at 12 months and then go up in 12-month increments. In most cases, the longest you can lease a new MINI model is for 36 or 48 months.

Money Factor

When you buy a car, the MINI payments come with interest, and the same is true with leasing. This is referred to as the money factor and is represented by a decimal, like this: 0.0020. To figure out what your interest rate would be, you just need to multiply that by 2,400, which, in this case, comes out to be 4.8 percent.

Capitalized Cost and Capitalized Cost Reduction

Also known as the cap cost, this is the total amount you will pay to lease your vehicle. This includes upfront fees, gap insurance, and service plans. The capitalized cost reduction involves anything that lowers the cap cost, such as a trade-in vehicle.

Residual and Depreciation

The residual is the value of the vehicle at the end of the lease. This gets calculated at the beginning of your lease. A key factor in this is depreciation, which is a car’s loss in value.

Gap Insurance

Gap insurance is oftentimes well worth the extra expense. This is because it offers great financial protection. If your car is involved in an accident and gets totaled, your insurance company will cover its value. But, if you owe more than it is worth, gap insurance will pay the difference.

Start a MINI Lease in Wesley Chapel, FL

Any questions about leasing? Get in touch with our MINI dealership in Wesley Chapel, FL. You can also come down to see what’s in stock and learn about current MINI lease offers.