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Lease Comparison
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A lease comparison is a way for consumers to compare different leases broken down into specific categories. There are typically three main factors that are analyzed in a lease comparison; selling price (or MSRP), the money factor, and the residual value of the vehicle. Many dealerships offer this tool on their websites, but there are also many independent third-party lease calculators available as well. Most can be found through any popular Internet search engine.
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Cap Cost Reduction
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This is a lease term that describes the amount of down payment due at signing, additional to any other fees. The larger the sum, the less your lease payments.
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Wheel Hub
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The part of your vehicle that houses the wheel lugs, and the part to which the tire assembly is attached.
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Performance Tire
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This describes a particular type of tire that is designed for use at higher speeds, and deliver a more dynamic feel in response to handling.
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Electronic Fund Transfer (EFT) Systems
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Technology and systems used for transferring funds via electronic means rather than by check. Many auto loans can be set up to be paid via EFT.
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Police Report
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See Accident Report Form.
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Age Limits
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Limits specified by an insurer for minimum and maximum ages, under or over which the insurer will not accept applicants or provide insurance coverage.
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Actual Cash Value
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Fair market property value, replacement cost less depreciation.
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Lien Perfection
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The process of ensuring the correct identification of the proper lien holder on the title.
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5-Cylinder Engine
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An engine that contains five internal combustion cylinders, typically all in a row.
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Lease Return
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This is the term that refers to a vehicle that has been previously leased and then returned back to the lessor. In this case, the lessor may choose to put the vehicle up for resale, or the lessor can release the vehicle to another consumer. Lease return vehicles are usually sold at a decent value, as the residual value and the car's actual value are not always the same.
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Certificate of Title
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Refers to a document that is issued by the state to provide an individual or entity evidence of ownership of a motor vehicle as well as lists any lien holder's security interest.
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10-Cylinder Engine
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An engine that contains ten internal combustion cylinders, most commonly in a V-shape with five cylinders per side.
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Clear Title
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A title that is free and clear, that is, that there are no liens, clouds, or other defects on the title.
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Cheap Car Lease
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A cheap car lease is a phrase used to describe a lease on a vehicle that carries a lower monthly lease payment than the payment it would take to actually purchase the vehicle. For example, if purchasing a vehicle with no money down gives a monthly payment of $350/month, a cheap car lease would be a lease for the same vehicle with no money down and a payment less than $350/month.
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Excess Mileage
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This is a lease term describing the amount of miles driven over the agreed-upon amount in a lease contract. Any excess mileage will be charged back to the consumer at per-mile price.
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Adjusting
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The process of investigating and settling a claim for losses or damage, carried out by the insurance carrier.
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At-Fault
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The party determined to be responsible and legally liable for the cause of an accident. The method for determination varies by state.
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Assurance (Insurance)
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Coverage that an insured person has through an insurance company
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Closed-End Lease
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A closed-end lease is a lease that does not make it a requirement for the lessee to purchase the vehicle at lease termination. Often the dealership or lease company will include the option for the customer to purchase at lease termination, but a closed-end lease does not make it a requirement. This lease also does not require the lessee to pay back any differences between the residual value of the vehicle and the market value.
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