Glossary of Kia Lease Terms

With an abundance of terminology, we understand that approaching a Kia lease can be confusing. From phrases such as “closed-end lease” to “residual value,” it’s important to have an idea of what these important terms mean. Before you jump into signing a lease for a new Kia car, take a look at these common terms that may get discussed. 

Annual Percentage Rate 

An annual percentage rate, or APR, is the percentage cost of one year's worth of credit. This includes the interest rate and any other fees. 

Adjusted Cap Cost 

This term refers to the adjusted capitalized cost of a vehicle. It includes trade allowance, down payment, incentives, and any other factor that was applied to reduce the capitalized cost. 

Closed-End Lease 

This is a prominent type of lease in the industry that allows a lessee to return their vehicle at the end of the lease term with no liability. Of course, this means that you must also meet all the terms of the lease. When you visit our Kia finance center, this is likely to be an option that will be suggested to you. 

Excess Wear and Use 

As you might expect, daily driving will introduce an expected level of wear and tear to a vehicle. This includes tire usage, dents, and stains. When your lease term is up, the amount of wear and tear will be evaluated to see whether it can be considered excessive. If so, then a charge may be incurred. 

Guaranteed Auto Protection Coverage 

If your leased vehicle is destroyed or stolen, Kia GAP coverage will waive the difference between the car's value and what you still owe on your lease. The only thing that you will pay is your deductible. 

Lease-End 

A lease-end is when the terms of a lease are completed as per your lease agreement. You can consider ending a lease early, but this may come with a penalty. 

Residual Value 

This refers to the value of a vehicle after your lease agreement ends. This will already have been decided when the lease is created. 

Apply For a Lease at Sansone Kia 

With these terms in mind, you are now prepared to give us a visit and explore your leasing options. Sansone Kia has a great selection of vehicles to browse, and we will be more than happy to find the best leasing arrangement for you. Contact our Avenel, NJ, Kia dealers to get the leasing process started today.