Lease Information

No matter how much experience you have buying cars, we know that learning about the specific terms of a lease can be just a bit intimidating. With a little help from our handy guide below, you’ll know plenty about these terms before your next visit to Dutch Miller Kia of Charlotte when you’re ready to lease a new Kia! Take a look below at some common terms you might see in your paperwork.

Acquisition Fee: This term refers to the amount of money a creditor or lessor (sometimes lending company) will be charging you as your lease starts, primarily in order to cover fees on the administrative side of things.

Adjusted Cap Cost: More often than not, this term will refer to things that might make a vehicle cost less in the rebate process, for instance rebates and incentives from a monthly sale.
Annual Percentage Rate (APR): You’ve probably seen this term in many vehicle offers, and the Annual Percentage Rate shows how much interest or percentage of credit occurs over a year.
Capitalized (CAP) Cost: This refers to the cost of the vehicle that you have negotiated with a dealer in addition to anything else that may be included in the lease and paid for, including things like service contracts.

Capitalized Cost Reductions: This refers to anything cost-wise that might lessen the capitalized cost, including incentives, down payments, and trade-in allowances.
Closed-End Lease: The most standard of all lease agreements, this is a lease that allows you to return your vehicle at the time the lease ends with no additional charges or liability as long as all lease terms have been fulfilled.

Contract Maturity Date: This is the date your lease ends and you are due to return your vehicle to a dealership.

Disposition (Turn-In) Fee: Something you’ll find within your lease contract, this is a fixed amount that you will pay at the end of a lease if you do not outright purchase the vehicle. This fee will get waived by Kia Finance if you lease or buy another Kia via a Loyalty Reward.

Down Payment: This is the amount that you pay up front to reduce how much you have to finance for your lease.

Excess Wear and Use: As you probably know, plenty of dinks and issues happen over time driving a vehicle, but some things are more egregious than others. With this in mind, a vehicle will be evaluated at the end of a lease to find out if the vehicle’s damage is simple wear and tear or something much more excessive, and fees may be incurred as a result. Be sure to check online for which kinds of damage you should be on the lookout for.

GAP (Guaranteed Auto Protection) Coverage: Sometimes, the worst might happen with a vehicle, like when your vehicle is totaled or, heaven forbid, it’s stolen. In the event of something like this, there is sometimes a missing overlap between how much your insurance pays out and how much was left on your lease. Kia Finance GAP helps waive the amount between the insurance and lease, so you only have to pay your deductible rather than what’s left of the lease payments. Restrictions and limitations may apply.

Lease-End: As the name suggests, this is the end point of your lease after everything has been fulfilled. You can end a lease early, but doing so will result in fines and penalties.

Money Factor: A Money Factor is the agreed upon finance rate for your vehicle lease. This will measure your month-to-month payments, which can sometimes fluctuate based on things like incentives. Higher money factors lead to higher payments.

Purchase Option: At the end of your lease, you generally have the option to purchase your vehicle, and this is for an amount specified in your initial lease agreement.

Residual Value: Vehicle value usually depreciates over time, and the Residual Value is the value of the vehicle at the end of a lease to reflect this, and that value is estimated in your paperwork upon lease.

Single-Pay Lease: With a Single-Pay Lease, you make a one-time upfront payment for your lease instead of monthly payments. Other things like the Residual Value don’t change, but a single payment results in less payment over time than a traditional monthly lease.

Now that you know the basics of lease terms, we hope that you’re more than prepared to lease a new Kia vehicle at Dutch Miller Kia of Charlotte! You can view our latest Kia inventory online here or visit us in person at 7725 South Blvd, Charlotte, NC 28273!