Auto Leasing

LeaseGuide.com author Al Hearn explains that automobile leasing is based entirely on the ..... that you pay for the amount by which a vehicle's value depreciates during the time you're driving it.

Depreciation is the difference between a vehicle's original value and its value at lease-end (..... value), and is the primary factor that determines the cost of leasing.

Generally, European and Japanese automobile ..... have lower depreciation than American brands.

Manufacturer's ..... Retail Price (MSRP) is the full price for a vehicle as displayed on its window sticker, including optional packages and destination charges.

When you and your dealer sit down and agree on a lease price for a car, this becomes the ..... cost, or "cap cost".

Cap cost can be reduced by rebates, factory-to-dealer incentives, trade-in credit, or a cash ..... payment; these are known as cap cost reductions.

When you lease, you're ..... the leasing company's money while you're driving their car and they rightfully expect you to pay interest on that money, the same as with a loan.

This interest is expressed as a money factor, sometimes called lease factor, and is specified as a small ..... number such as.00297.

A good rule of .....: Lease money factors, converted to an annual interest rate, should be comparable to, if not lower than local new-car loan interest rates.

However, you may not qualify for great money factors unless if you have ..... credit rating.