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Leasing Glossary

Unfortunately, the details of leasing make new-vehicle shopping all the more complex. And the savvy lessee must learn a new vocabulary. Place your mouse on the term to learn its meaning.
 
Acquisition Fee
Base Interest Rate
Buy at end-of-term interest rate
Capitalized (Cap) Cost
Capitalized (Cap) Reduction
Closed and Open End Leases
Dealer Participation
Depreciation
Disposition Fee
Down Payment
Early Termination
End-of-Lease Purchase Price
Final Purchase Price
Gap Insurance
Lease Term
Lessee
Lessor
Independent Lessor
MSRP
Manufacturer Discounts
Mileage Allowance
Money Factor
Monthly Payment
Net Capitalized Cost
Net Interest Rate
Opportunity Cost
Purchase Option
Purchase Price
Refundable Deposit
Residual Discount
Residual Penalty
Residual Value, Expected
Residual Value, Stated
Subvented (Subsidized) Lease
Total Out-of-Pocket Cost
Wear and Tear
 

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