Auto leasing school -> Car leasing 101 -> Manufacturer subsidized auto lease

Manufacturer Subsidized Auto Lease

The manufacturer subsidized lease is one of the most sought after types of leases. The dealership may have a urgency to move the vehicle lease off the lot, whether it be for new shipments arriving or the need to get rid of older models. The manufacturer may offer a very low interest rate on the vehicle, or increase the residual value of the car than the average lease. Essentially any loss due to the a ‘massaged’ residual value by the manufacturer is the consumers gain.

The manufacturer subsidized lease is also known as the “subvented lease”.

Single Payment Auto Lease

The basic concept of a single payment lease agreement is the consumer will make a large, one lump sum payment at the beginning of the lease term. Where a typical lease agreement is based on monthly payments, this type of lease is one lump sum.

The idea with a single payment lease is the consumer can save more money by paying in advance and avoiding any multiplying interest rates. If you consider this type of lease, make sure you first compare to ensure you’re not being overcharged by calculating the single lease payment.

A dealership may attempt to calculate this differently, thus making it unattractive to the consumer. But think about it….no interest charges…the difference a consumer pays between principal and interest can be profound. Do the math, know the difference!

Car leasing vs. buying