Glossary

Glossary of Terms

Buyout..... the residual balance left at the end of the lease term.  If you choose the option of purchasing your vehicle this is the price you would pay, plus taxes.

Capitol Costs..... is the selling price of the vehicle.

Capital Cost Reduction....this is a down payment on the purchase price of the vehicle. This amount is subject to tax.

Disposition Fee.....some lease companies charge for safety certification of the vehicle at the end of the lease.

First and Last....."First", is your first months lease payment which is due upon delivery.   "Last", is your final term payment.

Lessor.....the company that holds the lease.

Lessee....the person that is leasing the vehicle

M.S.R.P....is the Manufactures Suggested Retail Price

Payable Upon Delivery.....is your first payment, security deposit, dealer administration fees, government registration fees and taxes.

Residual....the amount the vehicle is estimated to be worth at the end of the lease. This is calculated by percentage of the M.S.R.P.

Security Deposit.....is an amount held until the lease ends for security on missing payments or penalties.

Term.....the number of months the lease or finance contract runs.  For example: 24, 36 or 48 months.

Termination....ending the lease contract, also referred to as "lease end" .

Zero Down....refers to no down payment required.  However, you may still need to pay your first possibly last as well as any applicable fees.

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