Jeep® Lease Terms to Familiarize Yourself With

November 15th, 2022 by

Close up of a keyboard with a Leasing concept.

Do you want to take advantage of the perks of a Jeep® lease at Brown’s Elkader Chrysler Dodge Jeep RAM? Feeling overwhelmed or confused about the process? We’re outlining common lease terms to help you shop with confidence.

Common Lease Terms

Acquisition Fee: The initial fee that is charged by your lender to cover charges for your lease approval, such as pulling a credit report and verifying insurance

Adjusted Capitalized Cost: The total amount for your vehicle that your payments are based on

Capitalized Cost Reduction: Anything that lowers your total cost, such as a rebate, trade-in, or down payment

Closed-End Lease: A lease that doesn’t require you to cover the difference at the end of your lease if your vehicle’s actual value ends up being different from the residual value

Early Termination: Ending your lease before the agreed-upon end date (this usually results in fees)

GAP (Guaranteed Asset Protection) Insurance: Covers the difference if you face a total loss (through an accident or theft), and you owe more on your vehicle than it’s worth

Gross Capitalized Cost: The negotiated purchase price of your vehicle

Mileage Allowance: Your limit for mileage that can be accrued on your lease

Money Factor: Represented as a decimal, this number helps your lender determine your financing charges

Open-End Lease: Requires you to pay the difference between your vehicle’s actual value and residual value at the end of your lease

Residual Value: Your vehicle’s projected value at the end of your lease (which is estimated at the beginning)

Wear and Tear Charges: Fees you owe at the end of your lease if it is deemed to have more than “normal” wear

Benefits of a Jeep Lease

There are many advantages to leasing a Jeep vehicle, including:

  • Lower monthly payments
  • Easy return process
  • The ability to drive the newest models

Ready to get started? Still have questions? Contact our auto finance center in Elkader, IA, today to learn more about the leasing process.