Across
- 2. The regular monthly payment due on a lease. Consists of the monthly lease charge, monthly depreciation, a monthly sales tax computed on the base payment, and any other monthly charge.
- 8. The fair market value of a vehicle at lease termination. Also known as lease end value. This value is computed by multiplying the MSRP by the residual percent.The fair market value of a vehicle at lease termination. Also known as lease end value. This value is computed by multiplying the MSRP by the residual percent.
- 9. Shortened version of Capitalized Cost Reduction. The total amount the consumer reduces the capitalized cost of a vehicle before the lease payments are calculated. This reduction may come in the form of cash down payment, net trade allowance, or rebates.
- 10. The rate per mile charged on each mile the lessee drives a leased vehicle beyond the miles per year allowed by the leasing source.
- 12. Used by many leasing sources instead of an interest rate when calculating the lease charge portion of the monthly lease payment. Also called the money factor.
- 13. Part of a monthly lease payment. The cost to the lessee charged by the leasing source for the use of the money the leasing source paid to the dealership to purchase the vehicle from the dealership.
- 15. Any up-front fee such as license, registration, or document fee associated with closing a lease deal.
- 17. Sales tax collected on the amount of cash cap reduction.
- 18. A lease that computes the monthly lease charge by multiplying the total capitalized cost by the money factor.
Down
- 1. A fee charged by the Lessor to cover the cost associated with selling the vehicle at the end of the lease when the vehicle is returned
- 3. The total charge for the miles the lessee drives a leased vehicle beyond the miles per year allowed by the leasing source.
- 4. Any company, usually a financial institution, which purchases vehicles from a dealership to make them available to be leased to the dealership’s customers.
- 5. The amount of money due from the lessee on the contract date. Usually includes the down payment, net trade allowance, leasing fees, first month’s payment, and a security deposit.
- 6. An amount, usually equal to the monthly lease payment rounded up to the next $25.00, charged by the leasing source as protection against any unforeseen costs resulting from the use of a leased vehicle. Once the vehicle has been returned in good condition and examined, the security deposit can be refunded.
- 7. A finance charge that is passed to the customer by the lender by incrementing the APR on the deal. This option is set up in Finance Companies in the DMS.
- 11. The person or business responsible for making the lease payments on lease agreement.
- 13. A written agreement between a consumer (lessee) and a leasing source wherein the leasing source purchases and retains title to a vehicle and permits the lessee exclusive use of the vehicle for a specified period of time. In exchange, the lessee promises to make regular monthly lease payments for the term of the lease. The consumer assumes responsibility for maintenance, insurance, registration, and taxes on the vehicle. At the end of the term of the lease the lessee must return the vehicle to the leasing source or purchase it for the residual value determined at lease inception. See Open-end Lease and Closed-end Lease
- 14. An open-end lease agreement that requires the lessee to pay off the residual value of the vehicle at lease maturity.
- 16. The financial institution who holds title to the vehicle until the final payment has been made by the customer. Banks, Savings and Loans, Credit Unions, and Thrift Lenders are typical lien holders in the automotive industry.
- 19. The company making a vehicle available for lease.