vocab

• • Lessee – the person who is leasing the car (the consumer) 
• • Lessor – the company that is leasing the car (example: BMW) 
• • Lease term - length of lease 
• • Capitalized cost - is the negotiated price of the car  or the “Lease price” 
• • Capitalized Cost Reduction - what you can pay up front to the lower the cost of the lease (ex: down payment or trade in)
• • Residual  Value – the value of the car at the end of the lease
• • Mileage limit - amount of miles allowed in lease
• • Acquisition Fee: a fee you pay when leasing a car or other types of vehicles
• • Disposition Fee fee that is charged at the end of the lease when the car is returned
• • Consumer Leasing Act -also known as, Regulation M, was passed in 1976 to assure that meaningful and accurate disclosure of lease terms is provided to consumers before entering into a contract. 
• • THE ONLY INVESTMENT A TYPICAL AUTOMOBILE IS  AN INVESTMENT IN YOUR MOBILITY
• • Some cars lose 10% of their value when leaving the dealer lot!
• • The average new car loses 20% of it’s value after year 1!
• • Some new cars may lose 40% of their value in after 3 years!
• •  The average new car loses about 65% of it’s value after the 5 years!
• • The term, money factor, specifies a finance rate for a car lease. 
• • Money factor is similar though not quite the same as interest 
• • Money factor, determines how much you’ll pay in finance charges each month during your lease.
• •  The higher the money factor, the higher your monthly payment and the more you’ll pay in total finance charges. Therefore, when shopping for a lease, you’ll want to look for the lowest money factor.
• • To convert to an equivalent annual interest percentage rate (APR), simply multiply by 2400. 
• Kelley Blue Book Value: refers to the value / condition of a vehicle by a guide known as the Kelley Blue Book; industry-leading automotive research company; you can see the value of the vehicle, put it up for sale etc.
• dealer preparation fee: a fee charged by a dealer to cover the cost of preparing a vehicle for sale
• destination fee: the fee paid by the consumer to the seller for the delivery of the vehicle to the consumer
• vehicle identification number: a unique number assigned to every vehicle registered
• trade-in value: the amount that a car dealer pays you toward the purchase price of a new or used car in exchange for your old car
• MSRP: Manufacturer's Suggested Retail Price, the list price (aka the manufacturer's suggested retail price)
• GAP amount: when your loan amount is MORE than your vehicle's worth
• GAP insurance coverage: pays the difference; protects the borrower if the car is written off / totaled by paying the remaining difference between the actual cash value of a vehicle and balance still owned on the financing
• auto lease: a contract allowing you to rent a car for a specified amount of time
• lemon laws: if you bought / leased a car that turned out to be defective (a "lemon" ), the Lemon Laws provide a legal remedy for you. The law covers new cars and many used