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Capitalized Cost
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This term, also referred to as cap cost, is the total amount of money being financed to lease a vehicle. This is the final number after all taxes, fees, and whatever balance is left for any trade-ins. Many dealerships associate the cap cost and the adjusted cap cost as being the same thing; however, the cap cost is technically the total amount being financed without the rebates and down payments factored in.
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Minimum Trade-In Allowance
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The minimum guaranteed value of your trade-in vehicle by a dealership, regardless of condition (at times, used with the term Push, Pull, or Drag).
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As-Is
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A vehicle being sold as-is has no warranty or guarantee attached to it. All repairs from the moment of purchase become the responsibility of the purchaser.
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Lease Termination
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Lease termination refers to ending a lease before its agreed-upon time, however many lessees and lessors consider lease termination a mutual thing, as opposed to breaking a lease, which is typically done strictly by the lessee defaulting on the lease. Lease termination can be partaken either by a third-party lease swapping organization, or by a mutual agreement between the lessee and the lessor.
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Belt
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A belt in a tire is a layer of rubber-coated cords that run around the circumference of a tire, making up the bulk of the tire's strength. The belts help keep the shape of the tire and resist damage from foreign objects.
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Dealer Incentive
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See Factory-to-Dealer Incentive.
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Limits of Liability
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As specified in the policy, this is the amount up to which the auto insurance company will protect the insured.
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Spec Sheet
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The vehicle's specification sheet. This lists all information regarding a particular vehicle, including drivetrain, options, price, capacities, and other specifications.
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Tire Rollover
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The act of the sidewall of a tire coming in contact with the road on hard cornering. Excessive tire rollover can cause cupping or uneven tread wear.
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Duplicate Title
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Applicants request another copy of a title, or request a Certificate of Title to be reissued, in the instance of loss or destruction of the original.
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Side Curtain airbag
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An airbag that deploys from the side of the driver/passenger to protect the head and side of the body from collision.
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Load Index
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This refers to the amount of weight a tire can hold when inflated to the proper psi. It is measured in pounds or kilograms and can be found on the tire's sidewall.
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Late Fee
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Fee charged by a lender for a late payment.
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Open-end Lease
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An open-end lease requires the lessee to pay the difference between the vehicle's actual value and its residual value at lease end. This amount is referred to as the deficiency. In an open-end lease, a lessee is required to pay the deficiency or to purchase the vehicle for the residual value at lease end. These leases are not as common because they are less advantageous than closed-end leases.
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Mileage Charge
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The mileage charge is the amount of money charged to the lessee by the leasing company for any excessive mileage on the vehicle at lease turn-in. The leasing company allows for a certain amount of miles on the vehicle for the duration of the lease. Any mileage over this amount at lease turn-in is the excessive mileage, and the lessee will pay a fee for this excess mileage. The amount of the penalty is typically determined by the lessor and is listed in the lease agreement at lease signing.
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DOT Number
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This is a number located on the sidewall of a tire which certifies its compliance with the Department of Transportation's safety standards. It is a 12-digit alphanumeric number that contains information about the size, manufacturer, plant, and assembly line where it was produced.
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Manufacturer Suggested Retail Price
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Also abbreviated as MSRP. This is the price of the auto that is suggested by the manufacturer of the vehicle. The MSRP includes the base price of the vehicle and any factory-installed options.
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Auto Insurance
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A form of insurance that protects against losses involving automobiles; provides protection from losses resulting from owning/operating an auto; covers losses to the insured's property and losses for which the insured is liable as a result of owning/operating an auto.
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Security
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Refers to assets or personal property used or pledged as collateral to secure a loan.
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Alloy Rims
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Alloy rims are the traditional alternative to steel rims. They are made from an alloy of aluminum or magnesium, and are typically silver/gray in color.
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