Mercedes-Benz Lease Terms to Familiarize Yourself With

Are you considering a Mercedes-Benz lease at Keyes European? The whole process can seem a little overwhelming, but we’ve put together this guide to help you familiarize yourself with common lease terms.

How Does A Lease Work?  

When you lease a vehicle, you agree to borrow it for a predetermined amount of time and then return it at the end of your lease. Your lease’s total cost is determined by looking at your vehicle’s value and then subtracting its estimated value at the end of your lease.

You still have to apply for the total cost and pay monthly payments to your lender until the end of your lease.  

What Are The Benefits Of Leasing?   

There are lots of benefits to leasing a new vehicle instead of financing. In general, leases:  

• Are more affordable than financing 
• Typically require a smaller down payment 
• Come with warranty coverage  
• Are newer vehicles with better technology and features 
• Allow you to avoid the hassle of selling at the end

Common Leasing Terms 

These are just a few of the terms you may see as we discuss your lease agreement. While this guide is meant to be helpful, certainly don’t hesitate to ask us any questions during the process.  

• Capitalized cost: the negotiated selling price of the car 
• Residual value: the projected value of your vehicle at the end of your lease 
• Lease rate (or money factor): the direct fees you pay for your lease 
• GAP insurance: protects you if you’re in an accident and you owe more on your vehicle than it’s worth  
• Mileage allowance: how many miles you’re allowed to put on your vehicle each year 

Ready to secure a stunning new Mercedes-Benz lease? Visit our Mercedes-Benz dealership near Los Angeles, CA to get started!