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


Depreciation

The annual reduction in the value of an asset attributed to normal wear and tear. Depreciation is based primarily on miles driven. The greater the miles, the greater the depreciation. Annual depreciation rates for autos are also influenced by vehicle model, maintenance, general consumer demand for the model, and the maker's reputation for quality. Luxury cars retain their value longer and, hence, depeciate more slowly. Depreciation expense is used to calculate the residual value for preparing closed-end leases.

Annual percentage rate (APR)
Advertising fee
Average cost per year
Amortization
Appraisal
Base price
Capitalized cost
Capitalized cost reduction
Closed-end lease
Cost analysis
Dealer charges
Dealer holdback
Dealer incentives
Dealer invoice
Dealer sticker price
Depreciation
Destination charge
Down payment
Escrow
Gap protection
Gross income
Home equity line of credit
Home equity loan
Invoice price
Interest rate
Lien
Loan application
Loan-to-value ratio
Lock-in
Manufacturer's rebate
Money factor
Monroney sticker price
MSRP
Open-end lease
Preparation charges
Rate changes
Reconditioning reserve
Residual value
Revolving credit
Savings rate
Tax rates
Tax savings
Term
Title
Trade-in value
Underwriting
Upfront costs
Upside-down
Working condition fringe benefit
Qualified nonpersonal use vehicle
215 S HURSTBOURNE PKWY, SUITE 103  •  Louisville, KY 40222  •  PHONE: 800-800-5327 • fax: (502) 426-2793 •  email: Info@alphaleasing.com