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If you're ready to lease a new car from Lyon-Waugh Auto Group, you may have some questions. Most drivers who sign a car lease at one of our dealerships are concerned about the terms used when talking about leases and what they mean.

Fortunately, we can answer any questions that you have about how leases work and we'll tell you what common lease terminology actually means in simple terms.

Common Lease Terms

Lessor: This is the party leasing the vehicle to you, the lessee. The lessor is usually the car dealership.

Closed-End Lease: This refers to a lease where you do not have to pay the difference between the actual value of the car at the end of your lease and the predicted “residual value.” We'll get to that in a second.

Residual Value: This is how much the lessor believes the vehicle will be worth at the end of your lease agreement. New cars naturally decline in value over time, so this calculation takes that depreciation into account.

Mileage Allowance: Since you don't own the leased vehicle, there are often limits built into your agreement. One common one is a limit on how many miles you can drive. Going over can mean extra fees.

Security Deposit: You put this down right at the beginning of your lease term. If you default on your lease agreement, you do not get this money back.

Disposition Fee: This fee baked into your contract covers the costs associated with selling your vehicle at the end of your lease term.

Order Yours Today!

Now that you know more about car leases, visit our new car dealers in New England and find the right vehicle for you. Whether you're looking for a luxurious sedan or the ideal family car, we're ready to assist you!