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In order for you to get the best lease deal on a car or truck it is vital to know all of the terms that will be associated with the vehicle lease agreement. There simply is no better way to go into a car dealership than to be very well educated on the terms and conditions of the agreement that you are about to enter.
This is also a very effective way to be sure that the sales person will not be able to pull the wool over your eyes. If the sales person meet a person that they do not think they will be able to trick, odds are they will not even try.
An Acquisition Fee is a fee that most leasing companies will charge a consumer in order to begin the lease, typically this is a non-negotiable fee.
The Final Selling Price of the automobile is the capitalized cost. Included in this is the tax, title, tags, registration and even optional warranty and insurances. It is common that these are tallied in with the monthly payments instead of costing upfront.
A Depreciation Fee is the fee that is charged because the value of the car is lowered.
Any fees that are to be paid at the start of the lease are called the Inception Fees. These are usually the first monthly payment, deposit taxes, title and acquisition fees.
The Mileage Allowance is the most miles the vehicle being leased can have put on during each year of the lease. This usually can be negotiated with the leasing company.
Mileage Charges are a fee that is charged on a per mile basis for each mile that the car was driven over the allotted mileage.
The Money-Factor is a fractional number, such as 0.00043, used to calculate the monthly payments.
The Residual Value is the value of the vehicle according to the leasing company at the end of the leases term. The higher the residual the lower the monthly payments.
The Security Deposit is an amount generally paid up-front that the leasing company requires incase there is a non payment.