Common Cadillac Lease Terms You Should Know

Drivers who’ve never leased an automobile before may feel like a dealer is speaking a different language as they explain their lease contracts. That’s a shame because you may end up paying too much if you don’t understand all the terms that are included in your lease agreement.

Don’t worry! The experts in our Cadillac finance center will explain all the terms in your Cadillac lease, and they’ll make sure you know what’s expected of you and what you can expect from us.

Acquisition Fee

Being a Cadillac dealer near Park Ridge, IL, a lot of people ask us what an acquisition fee is. Put simply, this fee refers to the expenses a dealership incurs to arrange a lease agreement, such as the cost to check a driver’s credit history and verify the person’s car insurance. While other aspects of your contract might be negotiable, this fee typically isn’t.

Lessee vs Lessor

If you’re close to our Cadillac dealership and type “new Cadillac cars near me” into a search bar, our inventory may show up in your search results. Once you settle on a model and decide to lease, you may wonder who the “lessee” and “lessor” mentioned in your contract are. Lessee refers to you, the person leasing a vehicle, while lessor is a term reserved for the entity that will retain ownership of your leased car, which is our Cadillac dealership in this example.

Disposition Fee

Motorists who lease a Cadillac sedan or another body style from Zeigler Cadillac of Lincolnwood and decide to walk away from our location at the end of their contract without buying or leasing another automobile may incur a disposition fee. This fee covers the costs we’ll have to pay to prepare your formerly leased automobile for resale.

Mileage Allowance

Generally speaking, this is one area of a lease that’s often negotiable. This term refers to the maximum number of miles you can drive annually while your contract is in force. If you exceed the allotted mileage, you’ll have to pay a penalty when your lease expires.

Security Deposit

As is the case when you rent a physical space, a security is money you pay upfront to cover a lessor’s expenses in the event you default on your obligation toward the end of your contract and miss a monthly payment or two.

Now that you’re familiar with some relevant terms, we encourage you to look over our Cadillac offers for interested lessees now. Have questions? Contact or visit Zeigler Cadillac of Lincolnwood!