Alpha Leasing Company
Auto Leasing Terminology
Taking the mystery out of auto jargon
Below is a list of terms relating to vehicle leasing and purchasing.
Click on any term to show its definition or click the show definitions link to show all definitions.

Show Definitions

Annual percentage rate (APR)

The effective interest rate paid on a loan, expressed as an annual rate. APR measures the true cost of borrowing by including any fees or prepaid interest involved in obtaining a loan. For instance, if a borrower pays $500 in closing costs to obtain a $10,000 loan, the APR is higher than the simple interest rate because the borrower is repaying a $10,000 loan but only receiving net proceeds of $9,500. The federal Truth-in-Lending Act requires lenders to disclose the APR.

Annual percentage rate (APR)
Advertising fee
Average cost per year
Base price
Capitalized cost
Capitalized cost reduction
Closed-end lease
Cost analysis
Dealer charges
Dealer holdback
Dealer incentives
Dealer invoice
Dealer sticker price
Destination charge
Down payment
Gap protection
Gross income
Home equity line of credit
Home equity loan
Invoice price
Interest rate
Loan application
Loan-to-value ratio
Manufacturer's rebate
Money factor
Monroney sticker price
Open-end lease
Preparation charges
Rate changes
Reconditioning reserve
Residual value
Revolving credit
Savings rate
Tax rates
Tax savings
Trade-in value
Upfront costs
Working condition fringe benefit
Qualified nonpersonal use vehicle
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