Ciocca Dealerships Answers Your Questions About Leasing

Learn About Leasing

The content in this section of our website is designed to answer questions you may have about auto leasing. Leasing is a way to finance a vehicle purchase, and it may or may not be the right way for you to acquire your next vehicle. Our goal isn't to convince you to lease, it's to make sure you understand this option you have to pay for your next vehicle then let you make the choice on what makes the most sense for you.

We do find that many customers don't really understand how leasing works, but once they do, they enjoy the benefits of leasing. Please feel free to ask our sales or business development personnel any questions you may have.

How Does It Work?

Auto leasing is a method of financing a vehicle where you only pay for the part of the vehicle you are planning to use and lease charges (like interest on a loan), normally over a term of around 3 years. It is very similar to conventional financing (which has terms ranging from 2 to as long as 8 years), but you don't pay for the entire vehicle.

During the first few years a new vehicle depreciates the most and requires the least amount of maintenance and repairs. Leasing protects you from excess depreciation by having a guaranteed future value (GFV, or residual value). Since most leases are for a term of around 3 years, and almost all manufacturers base warranty is at least 3 years, this limits your exposure to out of pocket repairs and expensive maintenance.

$40,000 Selling Price

$20,000 G.F.V. (RESIDUAL)

No obligations at the contract end, you have 3 great options:

  1. Trade or Sell (keep any profit)
    Select something new
  2. What if (avoid a loss)
    Market conditions change
  3. Keep it (love the car)
    Purchase for the option price


Avoid the following potential pitfalls:

  1. Long Term Contract
  2. Higher maintenance & repair costs
  3. Negotiating trade in values
  4. Assuming resale risk
  5. Being out of warranty

The Ciocca Dealerships Express Lease plan gives you the best parts of conventional financing, the opportunity for ownership and profit, and combines them with the best parts of leasing, shorter terms and guaranteed future value.

Please ask one of our associates if this plan may work for you.
This is an example for illustration purposes only and does not represent an actual transaction.

Resale Risk vs. Resale Value

When a customer purchases a vehicle with cash or traditional financing, they assume all the resale risk. They are at the mercy of the used car market for the resale value of their specific vehicle at the time they want to sell or trade it in. The following nine things have a direct impact on the value of a used car:

  1. Mileage
  2. Condition
  3. Factory Error
  1. Economy
  2. Accident
  3. Color or Equipment
  1. Time of Year
  2. Publicity
  3. Technology

When a customer takes advantage of the Ciocca Express Lease, the risk associated with items three through nine are transferred to the leasing institution. They are only responsible for the lease vehicle's miles and condition at lease end.

Leasing institutions place a guaranteed future value on the vehicle, and if it is worth more than that value at lease end, the customer can take advantage of that potential profit. If the vehicle is worth less, they can turn the vehicle in at lease end and let the leasing institution absorb that financial loss.

Lease Comparison

Click the links below for examples of a Ciocca lease document.

Ciocca Express Lease Comparison Example - PA
Ciocca Express Lease Comparison Example - NJ

The Real Cost of Ownership

The below graph shows how the cost of depreciation and maintenance & repair change as most vehicles age. Vehicles depreciate the most right after purchase, while maintenance and repair costs increase significantly as vehicles age. Customers assume the risk of expensive repairs after the warranty expires, and regular scheduled maintenance & normal wear items start to become more expensive as well.

Customers that lease for 3 years or less avoid these more expensive ownership costs by only driving the vehicle when it requires the lowest amount of maintenance and repair, and they control depreciation through the residual value established for their vehicle. People that finance their vehicles on long term (5 years and longer) finance contracts incur these higher long-term costs on top of their monthly payment. Customers that pay cash or finance their vehicle also have no protection against excess depreciation from factors beyond their control.

  1. Ciocca Dealerships

    2141 Downyflake Lane, Allentown PA
    Allentown, PA 18103

    • Sales: 484-656-0098
  2. Audi Allentown

    4725 Hamilton Blvd
    Allentown, PA 18103

    • Sales: 484-273-4779
  3. Audi State College

    3220 W. College Avenue
    Building 1
    State College, PA 16801

    • Sales: 814-206-0903
  4. BMW of Williamsport

    205 Lycoming Mall Drive
    Muncy, PA 17756

    • Sales: (570) 491-1438
  5. Ciocca Atlantic City

    430 N ALBANY AVE

    • Sales: (609) 438-8835
  6. Ciocca Cadillac of Atlantic City

    340 N Albany Ave
    Atlantic City, NJ 08401

    • Sales: 609-428-4126
  7. Ciocca CDJR Of Flemington

    204B US-202
    Flemington, NJ 08822

    • Sales: (908) 948-8049
  8. Ciocca Chevrolet of Princeton


    • Sales: 609-445-3704
  9. Ciocca Chevrolet of West Chester

    WEST CHESTER, PA 19382

    • Sales: 484-962-0422
  10. Ciocca Chevrolet of West Chester

    715 Autopark Boulevard West
    West Chester, PA 19382

    • Sales: 484-696-4064
  11. Ciocca Chevrolet of Quakertown

    QUAKERTOWN, PA 18951

    • Sales: 215-375-7634
  12. Ciocca Corvette of Atlantic City

    430 N Albany Avenue
    Atlantic City, NJ 08401

    • Sales: (609) 431-0928
  13. Ciocca Ford of Quakertown

    1531 Park Ave
    Quakertown, PA 18951

    • Sales: 866-833-7619
  14. Ciocca Honda of Williamsport

    201 Lycoming Mall Dr.
    Muncy, PA 17756

    • Sales: 570-940-7002
  15. Ciocca Honda of Harrisburg

    8001 Allentown Blvd
    Harrisburg, PA 17112

    • Sales: 717-743-1638
  16. Ciocca Hyundai of Williamsport

    202 Lycoming Mall Drive
    Muncy, PA 17756

    • Sales: 570-354-5987
  17. Ciocca Hyundai of Quakertown

    520 S. West End Blvd.
    Quakertown, PA 18951

    • Sales: 215-536-2700
  18. Ciocca Kia

    1710 N Olden Ave
    Trenton, NJ 08638

    • Sales: 609-883-2800
  19. Ciocca Nissan of Quakertown

    301 S. West End Blvd
    Quakertown, PA 18951

    • Sales: (215) 918-7966

    1531 Park Avenue
    QUAKERTOWN, PA 18951

  21. Ciocca Subaru

    1710 N Olden Avenue Ext
    Ewing, NJ 08638

    • Sales: 609-883-2800
  22. Ciocca Subaru of Philadelphia

    1400 S. 33rd St.
    Philadelphia, PA 19146

    • Sales: 215-608-4100
  23. Ciocca Subaru of Pleasantville

    401 West Black Horse Pike
    Pleasantville, NJ 08232

    • Sales: 609-646-1500
  24. Ciocca Subaru of Allentown

    4611 Hamilton Blvd
    Allentown, PA 18103

    • Sales: (610) 395-3745
  25. Ciocca Toyota of Williamsport

    203 Lycoming Mall Drive
    Muncy, PA 17756

    • Sales: (570) 630-9296
  26. Ciocca Volkswagen of Allentown

    1346 Lehigh Street
    Allentown, PA 18103

    • Sales: (610) 600-1779
  27. Ciocca Volkswagen of State College

    3220 West College Avenue, Building 2
    State College, PA 16801

    • Sales: 814-206-0902
  28. Faulkner Buick GMC West Chester

    705 Autopark Blvd
    West Chester, PA 19382

  29. Ciocca Ford of Quakertown

    780 S West End Blvd
    Quakertown, PA 18951

    • Sales: (215) 709-8292
  30. Ciocca Ford of Souderton

    3470 Bethlehem Pike
    Souderton, PA 18964

    • Sales: 888-220-1893
  31. Ciocca Ford of Souderton

    3470 Bethlehem Pike
    Souderton, PA 18964

    • Sales: 215-486-2515
  32. Faulkner Buick GMC West Chester

    WEST CHESTER, PA 19382

    • Sales: 610-674-0610
  33. Mercedes-Benz of Flemington

    135 Route 31
    Flemington, NJ 08822

    • Sales: (908) 332-8489
  34. Mercedes-Benz of State College

    127 Leisure Lane
    State College, PA 16801

    • Sales: 814-206-0904
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