The Lease Rate (Rental)

Purchasing and Capitalization - Titling, Registration - Used Vehicle Disposition
Miscellaneous Services - Special Features 

    Every finance lease rate (rental if you wish) is composed of:

Depreciation

The amount built into each payment will reflect a projected residual value that relates more accurately to the actual vehicle make and model, mileage, use, model year cycle and equipment. We use the computerized, "dollar value" Automotive Lease Guide (ALG), deduct for excess mileage and downside that figure by a mutually agreed upon amount.

The cost of money

Based on the prevailing Prime Interest rate, at time of delivery, plus a markup, the lease fee portion is calculated on either a step-down (irregular) or level-line (regular) payment schedule. This is not to be considered a commercial loan type of transaction. The lease fee covers many other services than just the financing of a vehicle acquisition.

Other Monthly Fees

NONE! There are no other lease fees in our base lease rates.

    These parts are added together for the total monthly rental. Tax, if applicable, is added to the rental.

    While discussions usually focus on the various fixed costs in a lease payment, the largest and perhaps most important portion of the payment really is variable—the cost of depreciation. It is the one component that an experienced lessor can help customers find ways to significantly reduce. (i.e. properly matched drivers and vehicles, selection process/plan, time of year for deliveries, timing of recycling, accessories, colors, taking timely advantage of all available factory fleet discounts, rebates, packages, and more) Experienced lessees know that in the final analysis many other factors are much more important than just a base rental payment fees.