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FINANCING OPTIONS TUTORIAL

Agreed-Upon Value of the Vehicle:		The dollar amount you and the dealer determine will be used to calculate lease financial figures for a specific vehicle. In leasing, this figure is similar to the agreed-upon selling price in financing.
Acquisition Fee:		A processing or administrative charge included in most lease transactions. It may also be called an administrative fee or assignment fee.
Depreciation:		The amount by which a vehicle is expected to decrease in value over a specific period of time.
Gap Protection:		A specialized type of protection that pays the difference between a total loss insurance settlement and the net scheduled payoff. In some cases, the customer may be responsible for the insurance deductible.
Gross Capitalized Cost:		In leasing, the agreed-upon value of the vehicle and any items you pay for over the lease term (such as acquisition fees or insurance).
Lease Agreement:		The document that contains the lease terms and conditions of use.
Lease:		An agreement between the owner of the property (lessor) and the user (lessee) for the use of a leased vehicle subject to stated terms and conditions for a certain length of time and for an agreed upon payment.
Lessee:		The person who has temporary possession and use of a leased vehicle.
Lessor:		The owner and title holder of the leased vehicle; the person or organization who regularly leases, offers to lease or arranges for the lease of the vehicle.
Mileage:		The number of miles per year agreed upon in the lease agreement - usually 12,000 to 15,000 miles.
Rent Charge:		The charge that applies in a lease agreement that is similar to the finance charge on an installment sale contract or interest on a loan. Also referred to as a lease charge.
Residual Value:		The end of term value of the vehicle established at the beginning of the lease and used in calculating your base monthly payment. This value may be determined, whole or in part, by using residual value guidebooks (independently published value guides).

TIP

Know what you're talking about - The Key Terms listed here can help you know why APR is important when you finance and Residual Value is important to know when you lease



Jump to:
1.	Introduction	10.	Length of Financing
2.	Your Financing Options	11.	Leasing Through the Dealership
3.	What You Need to Know About Options	12.	How Mileage Affects a Lease
4.	Financing and Leasing Glossary	13.	Wear, Tear, and Maintenance
5.	Understanding Finance Terms	14.	When a Lease Expires
6.	Understanding Lease Terms	15.	Buy vs. Lease - How to Choose
7.	Payment Options	16.	Buy vs. Lease - An Exercise
8.	At the Dealership	17.	How Lease Payments Differ
9.	Financing Through the Dealership	18.	Exercise Your Options - A Quiz

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