A charge that is included in most lease transactions. Be sure to always ask the Seller for any and all hidden fees not included in the initial price(s) of the product(s) or service(s) being financed.
Adjusted Capitalized Cost:
The sum of the vehicle price/MSRP (including destination and handling charges and Federal Gas Tax (if applicable)) plus acquisition fees minus the down payment and/or trade-in value.
Capitalized Cost Reduction:
The agreed upon value of the vehicle (the estimated selling price), plus any additional items that might be paid over the term of the lease such as the acquisition fee, taxes, or a service contract.
Some OEMs (Original Equipment Manufacturers) or Retailers may charge a Destination Fee which is the cost (to you, the buyer) for transporting the product being purchased from one location (e.g. shipping dock) to another location (e.g. Retailer's store). The destination fee may vary depending on the product being purchased.
Government agencies and other organizations responsible for processing certain legal documents will charge you, the buyer, to process those documents. For convenience to the buyer, many retailers will pay for the document processing and in turn pass those cost on to you, the buyer.
This is any payment in cash and/or other financial values accepted by the seller, which typically reduces the amount financed. The higher your down payment, the lesser your monthly payment will be.
Estimated Amount Financed:
The price that you anticipate to pay for the vehicle.
Gross Capitalized Cost:
The Gross Capitalized Cost minus the Capitalized Cost Reduction.
Interest Rate or APR:
The APR (Annual Percentage Rate) is the interest or cost of your estimated amount financed at a yearly rate.
Total Due at Lease Signing:
The total amount to be paid prior to or at lease signing or by delivery.
The amount still owed on your trade-in. This amount will be deducted from the total value of your trade-in.
Loan Amount/Vehicle Price:
The price of the vehicle that is equipped with packages and/or options that are most popular for the selected model. Price may or may not include other fees and charges (e.g. destination fee, and other applicable taxes).
Retail Add-ons are defined as items added (installed) on the product by the Retailer/Seller, which were not part of the original product or installed by the manufacturer. For example, if buying a car, you may select to add NAVIGATION system, High-end tires, Insurance, Alarm System, Service Contract, certain Accessories, and other items that are Add-ons.
The duration of your loan or lease, usually measured in months (e.g., 60 Months or 5 Years. The longer the Term, the lower your payments; and the shorter the Term, the higher your payments.).
Total Due at Lease Signing:
The total amount to be paid prior to or at lease signing or by delivery, if delivery occurs after lease signing.
The net value of your trade-in vehicle that will be credited toward the purchase or lease. This amount may be negative if your current vehicle is worth less than the balance remaining on your current loan or lease.