Have your heart set on a new Alfa Romeo lease but the process feels daunting? This guide from Helfman Alfa Romeo of Sugar Land can give you a little extra confidence when you shop.
Adjusted Capitalized Cost
This is your vehicle’s gross capitalized cost minus the capitalized cost reduction. It’s the total amount used to calculate your lease payments.
Capitalized Cost Reduction
This is the money you apply towards your lease upfront (and/or your trade-in value).
Closed-End Lease
The most common type of lease, which doesn’t leave you responsible for the difference if your vehicle is deemed to be worth less than its predetermined residual value.
Depreciation
The difference between your vehicle’s current value and its value at the end of your lease.
Early Termination
If you opt to end your lease before your predetermined term, this is known as an early termination. This will cost additional fees.
GAP Insurance
Guaranteed Asset Protection (also known as GAP insurance) covers the additional amount you owe on your lease if it exceeds its estimated value after it’s totaled or stolen.
Gross Capitalized Cost
A lease’s total purchase price.
Mileage Allowance
The number of miles you can drive each year without a penalty.
Open-End Lease
With an open-ended lease, you’ll be responsible for paying the difference on your lease if you owe more on it than its predetermined residual value.
Purchase Option
The option to purchase your vehicle at the end of your lease (the purchase price should be outlined in your contract).
Residual Value
The vehicle’s projected value at the end of your lease.
Still have questions? Stop by our Alfa Romeo dealership in Houston, TX to chat with our financial experts—we pride ourselves on a quick and transparent leasing process!
