Before you sign a Ford lease, make sure you know all the relevant terms and conditions. There are several key points that you’ll need to understand, including what they mean and how they affect your leasing experience. Courtesy of the Folsom Lake Ford finance team, here are five Ford lease terms to know.
Base Monthly Payment
This figure is how much you’ll be expected to pay each month, minus any additional fees, taxes, and penalties. Essentially, this is how much the vehicle lease itself costs per pay period; it will not be the same as your actual monthly total.
Early Termination Fee
If you need to end your lease early, you’ll be charged an early termination fee to help cover costs. You may also incur this fee in the event of a stolen or totaled vehicle. This additional fee will be listed at signing.
Mileage Allowance
When you lease a vehicle, you’ll only be allowed to drive for a certain number of miles per year. This mileage allowance is listed in your lease; failure to follow this mandate will result in additional fees.
Depreciation
Every lease includes a depreciation cost to help the dealer cover the projected devaluation of the vehicle over time. Although depreciation does confuse and scare some new drivers, it’s merely a way for us to account for the car’s changing value.
GAP Coverage
This optional coverage gives you financial assistance for a lost or stolen vehicle. It helps reimburse you for associated costs above what your insurance company will pay out.
Explore Ford Lease Options in Folsom, CA
Now that you know what lease terms to look for, it’s time to shop around at Folsom Lake Ford. Contact our finance department today to inquire about leasing options for your vehicle of choice and schedule a test drive!
