Leasing Glossary

Open-end Lease
This is the agreement where the monthly payment and residual value are specified at the start of the lease. There are no kilometre restrictions or wear and tear clauses in this type of lease because at the end of the lease the customer guarantees the value of the vehicle.


Closed-end Lease*
You make a set number of lease payments during the term of your lease, then return the vehicle at the end of the lease term. You are required to make additional payments if there is physical damage to the vehicle, such as excess wear and tear, or the number of kilometres you have driven is higher than the kilometre limit set out in the lease.
*Luxur Fine Cars of Edmonton only offers open-end leases.


Canadian Black Book Value
The amount identified as the value for the particular vehicle as determined by the "Canadian Black Book" published by Wm. Ward & Sons Ltd.


Capitalized Cost
The total value of the lease financed by the leasing company including:

  • Selling Price - the price of the vehicle prior to any additional costs.

  • Dealer Options - items that have been added, that were not done at the factory level.

  • Extended Warranties - any extended warranties than the customer wishes to have capitalized into the lease.

  • Insurance - life, disability, involuntary unemployment, and/or gap insurances that the customer may purchase that is capitalized into the lease.
    NOTE: This does not include vehicle insurance.

  • Less - Down payments and trade-in values.

 

Down Payment
The amount the customer is putting down to reduce the capitalized value against which the lease payment will be based.


Cash Due Upon Signing
All amounts due to be collected upon the delivery of the vehicle. These include:

  • Down payment plus taxes on the down payment

  • First monthly payment

  • Security deposit (if applicable)

  • Lease Service Fees plus applicable taxes if not included capitalized into the lease.


Lessee
The customer who is leasing the vehicle (you).


Lessor
The company that owns the vehicle and is leasing it to you (lendor).


MSRP
The amount that the manufacturer determines as the retail selling price of the vehicle. This is applicable to new vehicles only.


Rental Amount
The total of the Monthly Lease Payment plus applicable taxes.


Residual
The value at the end of the lease as specified in the lease agreement, which is an estimate of fair market value of the vehicle at the end of the lease term.


Security Deposit
Amount collected at delivery for security, usually one (1) monthly lease payment rounded up.  The deposit is refunded at the end of the lease or applied against the lease buyout.


Term
The length of the lease in months.


Trade-in
The equity resulting from a trade-in.

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