Car Dealer's Subvented Leases

Sub-vented leases are similar to the special rates that we mentioned in the previous article. These are special money-factors and residuals that are provided by the manufacturer and are crafted to advertise a low monthly payment. 

 

Customers must be aware that when car dealers advertise a lease payment they are required to only publish the payment, Residual and down payment. This is important because a lease contract will have additional costs that are added to the down payment.  The total of these costs called the “Drive-Off”. These “drive-off” costs usually include the first payment and licensing fees.

 

Also, since these sub-vented leases are created to advertise a low payment the allowable mileage is often very low. 

 

For the dealer, sub-vented leases have an advantage over tradition financing in that they will produce a significant chance of selling the customer their next vehicle when the lease expires.