What is Leasing?

A lease is a contract for use of a vehicle for a specified period of time, for an agreed upon periodic payment.

Lease payments are based on the price of the vehicle minus its lease-end value (the amount Mitsubishi Motor Credit Company determines the car will be worth at lease termination). Lease payments also include rent charges based on the full cost of the vehicle.

  • Leasing allows the customer to drive his/her vehicle of choice without ownership.
  • Lessees with a purchase option may choose to purchase the vehicle at the end of the lease term.
  • The customer pays for the value of the vehicle used over the term rather than paying for the value of the entire vehicle.
  • Title to the vehicle remains with Mitsubishi Credit (or its designee), the legal owner of the vehicle.

Lessee Benefits

The RCL Plan provides the customer with many benefits compared to retail financing.


  • Generally, no down payment is required.
  • At lease inception the lessee must pay one monthly payment and a security deposit, if required, roughly equal to the monthly payment.
  • Down payments charged to a credit card are acceptable as long as the down payment does not exceed $500, is properly disclosed at the time of the credit decision, and is listed on the contract as a credit card payment.


  • The customer pays for the value of the vehicle used over the term rather than paying for the value of the entire vehicle.
  • Although not usually required, a down payment can reduce the customer’s monthly payment and facilitate credit approval.


  • Get a more luxurious, better-equipped vehicle.
  • With lower payments customers can afford more finance and insurance options.
  • Leasing allows customers to satisfy their vehicle desires – not just their needs.


  • The lessee has no responsibility for fluctuations in the used car market since the lease-end value is predetermined.
  • Lessee’s liability at lease-end is limited to excess wear and use and excess mileage charges.
  • GAP included in lease agreement eliminating the customer’s responsibility for the most deficiencies in the event of a total vehicle loss.
  • Lessee has three attractive options at lease-end:
    • Return the vehicle and lease again
    • Purchase the vehicle at a predetermined price and keep it
    • Return the vehicle and walk away

Frequently Asked Questions about Leasing

Q: What’s my price?
A: Price is important to you isn’t it? We know that at Arrow Mitsubishi and that is why we have a program, the Red Carpet Lease Plan, which allows you to pay for only the portion of the vehicle you use. The format of the Red Carpet Lease Agreement offers a great way to explain how ‘price’ works in the lease context.

Q: I really like that model, but I know that I could never afford a car like that.
A: You may be able to afford more than you think. We have a program that makes more expensive models more affordable by letting you pay for only the part of the car you use. Let us show you how it works and how it reduces your monthly payment!

Q: I’d have to take a real long term to afford that car. With my last car, by the time I could trade it in, I had put a lot of money into maintenance and repairs.
A: We have a program designed to help get our customers into a new car before they run into costly repairs.

Q: I saw this ad in the paper on leasing but I’ve never leased a car. How does it work?
A: It is very simple. You pick out a car. We negotiate a price. Mitsubishi Motor Credit Company establishes what it believes will be the future value on the car, and you pay the difference plus rent charges instead of paying for the whole car. Let us show you how it works!

Q: I want to own my car.
A: Why buy now? Can you forecast the future? Few of us can. You don’t have to with a Red Carpet Lease. With a purchase option price set at the beginning, by the time you’re at the end of the term you can decide whether it’s a good deal to own the vehicle. If the vehicle is worth more than the purchase option price then exercise the option and receive the value retained in the car. If the vehicle is worth less than the purchase option price you can walk away from the vehicle and avoid the loss that you would take if you had purchased it on day one. Heads you win, tails you don’t lose.

Q: I don’t have anything at the end.
A: With leasing you can afford a shorter term than purchasing and give yourself options instead of obligations. If you choose to finance you assume the obligation of what this car is worth at lease-end. If you choose the lease plan Mitsubishi Motor Credit Company takes the used car market value risk and you take with you only the options at lease-end. With the purchase option if you want to purchase the vehicle at that point you can do so.

Q: I know someone who had to pay a large mileage penalty at the end of the lease and I want to avoid that kind of unexpected charge.
A: Different drivers have different mileage needs. With Red Carpet Lease you have seven mileage options to choose from: 10,500, 12,000, 13,500, 15,000, 16,500, 18,000, or 19,500 miles per year. After assessing your yearly driving habits choose the option that best suits your driving needs. In case the 19,500 miles per year option is not enough you may purchase additional miles. You may receive a refund for any unused additional miles purchased.

Q: I know someone who paid a huge wear and use bill at the end of his lease.
A: Leasing protects you from unexpected fluctuations in the future used car market. However, the value of the vehicle can only be guaranteed with a standard for its condition and mileage. You must maintain the vehicle as if you owned it by following the manufacturer’s servicing recommendations and keeping it in good running order. Excess wear and use charges apply only if you don’t keep the vehicle in good condition as specified in the lease contract.