What is an "implicit lease rate"?

What is an "implicit lease rate"?

James Bell (Publisher, Auto Reviewer) gives expert video advice on: What does "balloon payment" mean?; What does "base value" mean"?; What does "buy here, pay here" financing mean? and more...

With regards to financing your car, an implicit lease rate is in essence what your actual payment is going to be built on when you're doing a lease. Quite often that lease rate can be adjusted in a positive way by the manufacturer who's doing incentives or programs to provide more incentives for taking on that lease. So, they will provide additional funding to bring that percentage down to something that allows that monthly payment to come down, and therefore make the lease more attractive.