BMW Lease Terms to Know

There are many good reasons to sign a BMW lease, but we understand that all of the terms being thrown around can seem confusing to someone who’s never done this before. That’s why we want you to take the time to familiarize yourself with some common leasing terms before you sign on the dotted line here at BMW of Asheville.

Lessor

This is the company that is leasing the vehicle to you. Sometimes this is a bank or another financial institution. It can also be the financial division of the automaker itself. The main point is that the lessor owns the vehicle, not you.

Lessee

This is the term for you, the driver who has decided to lease the vehicle.

Term

Your term is how long you will be leasing the car. Most lease terms last 24 or 36 months. Once your lease ends, you have to figure out whether you want to turn in your vehicle or keep it.

Depreciation

As soon as a new BMW rolls off of the lot, it begins to lose its monetary value. This is referred to as depreciation, and that is essentially what you are paying for when you make a lease payment each month.

Residual

The term residual refers to how much your vehicle should be worth at the end of your lease. Calculating the depreciation and residual are crucial steps when drawing up the lease agreement. These are big factors determining how much you pay each month and how much you may be able to purchase your car for at the end of your lease term.

Explore Your BMW Lease Options in Asheville, NC

So if you’re ready to drive away in a new luxury car, visit our BMW of Asheville can answer any questions that you have about the leasing process, and we’ll make it easy to find a deal that works for your budget. We look forward to assisting you!