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

Revolving credit

A form of open-ended credit in which a borrower can draw down on the credit line for the amount of the limit, repay at least some of the loan, and then draw down on the line again up to the limit amount. In some cases, periodic minimum payments or cleanup periods—paying down the disbursed amount to zero—are required by the lender to ensure that the borrower has the financial capacity to repay the line.

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
215 S HURSTBOURNE PKWY, SUITE 103  •  Louisville, KY 40222  •  PHONE: 800-800-5327 • fax: (502) 426-2793 •  email: