FutureStarr

What Is a Lease Quote

What Is a Lease Quote

What Is a Lease Quote

via GIPHY

“A lease quote is a document that provides the financial information and details to the customer. This is done using a form and page layout. The customer is then instantly provided with a text version of the lease. This version of the lease is a wide, easy-to-read document with a list of items and figures on one side, and the space description on the other. This allows the customer to take the information home and have a sense of what they are doing.

Lease

The "lease company" is an institution that is purchasing the vehicle from the dealer and leasing it back to you. This may be a financial arm of one of the manufacturers, such as Ford Motor Credit, General Motors Acceptance Corp., or Toyota Motor Credit. There are, however, independent leasing companies, frequently backed by banking institutions, such as Chase Manhattan, Wells Fargo, General Electric Capital Auto Lease (GECAL), Bank of America, etc. In all cases, the lease company is buying the vehicle from the dealership and leasing it back to you for a specific period of time. The best lease company for a specific vehicle varies based on market conditions and regional availability of particular lease companies.

The "invoice price" theoretically represents what the dealer paid for a specific vehicle. In actuality, other discounts may result in the dealer’s true cost being significantly lower. In any event, since the invoice price is the same from dealer to dealer, it makes an excellent fixed reference point from which to compare dealer markups and markdowns and from which to calculate the lease or purchase cost of the vehicle. There is an invoice price for the base car and an invoice price for each factory installed option. (Source: www.checkbook.org)

Leasing

"Capitalized Cost," often referred to as "cap cost," should be separated into "gross" cap cost and "adjusted" cap cost. Gross cap cost includes the agreed upon price of the vehicle, any fees, extended service plans, gap insurance premiums, or other add-ons that you may be required to pay. Adjusted cap cost is the gross cap cost less any reductions by trade-in, cash downpayment, or rebates. Adjusted cap cost is the amount actually financed over the term of the lease. Many lease ads and some dealerships imply that cap cost is the same as MSRP. This is untrue. Leasing a vehicle with a cap cost of MSRP is the equivalent of buying a vehicle for full sticker price, which is much more than most customers should pay. (Source: www.checkbook.org)

 

Related Articles