From the desk of Jet Tune:

1. What is a lease? A lease is really a fixed amount of time in which you use a vehicle that belongs to a financial institution with a set amount of monthly usage payments and a maximum amount of monthly or yearly miles driven.
2. How is a lease payment arrived at?
   1. The selling price (capitalized cost) is established first.
   2. Next, a predetermined residual value (the value of the vehicle at the end of the lease) is factored.
   3. Then, a lease factor (another word for the finance rate), which is predetermined by the financial institution, is applied.
   4. So, cap cost minus residual (end) value, times lease factor divided by term minus a usage cost plus a state tax on that amount equals your monthly payment.
3. What are the pros of leasing?
   1. Lower payment than financing in most cases.
   2. The ability to walk away from the vehicle at the end of the lease. (closed end lease)
   3. A predetermined value to buy the vehicle at the end of the lease (if you choose).
   4. The ability to protect yourself from market fluctuations of vehicle values in the future.
   5. A way to have the use of a new vehicle every 3 or 4 years, and to, in most cases, always be covered by the factory warranty.
   6. In many cases, the manufacturer subsidizes rates and residuals to make payments attractive.
4. What are the cons of leasing?
   1. You must have a higher level of credit and stability than in the case of most purchases on credit.
   2. Excess monthly or yearly mileage usually makes the lease payments prohibitive and, in most cases, higher than buying or financing to own.
   3. You are never building any equity unless you choose to buy your vehicle at the end of the lease.
5. When is the best time to lease?
   1. Almost always at the first of a model year (as the residuals are highest).
   2. When the factory offers specials.
   3. When you do not feel you want the same vehicle for an extended period.
   4. When you desire the full protection of the factory warranty for the term of payments.

Volvo of Nashville has lease professionals who are happy to quote and customize your lease needs.
Please contact: Jet Tune at (615) 244-7000, ext 100 or his assistant, Paula Thompson at ext. 102
or
Bill Andree at (615) 244-7000, ext 111, cell (615) 969-8506 or his assistant, Amanda Adams at ext. 103
*Remember lease rates change quarterly.*
Our current lease institution is: