LEASE & PURCHASING TERMS & DEFINITIONS
Lessee: The person(s) who enters the lease; the person(s) responsible for payment of the lease.
Lessor: An entity that leased personal property under a lease; in a traditional dealer-originated lease, the dealer is the original lessor and the lease is assigned to a subsequent lessor, such as a captive finance company or bank.
Acquisition Fee: A fixed dollar amount that is charged by the lessor that offsets some of the costs related to setting up a lease account.
Closed End Lease: A lease in which the lessor is responsible for the difference between the residual value and the realized value provided that the lessee retains the vehicle until the date of maturity. The lessee may still be responsible for excess mileage, wear and use.
Disposition Fee: A fee charged by the lessor at time of termination to process the return of the vehicle.
Excess Mileage: Mileage which exceeds the standards for normal use listed on the lease agreement, for which a lessee may be charges when the vehicle is returned.
Excessive Wear and Use: Damage that exceeds the standards for normal use listed on the lease agreement, for which a lessee may be charged when the vehicle is returned.
Residual Value: The estimated value of the vehicle at the end of the lease; this value is used to determine a portion of the monthly payment.
Down Payment: Cash paid up-front by a borrower to reduce the amount financed in a lease or loan. While a large down payment can reduce your monthly payments, it also likely will be forfeited in the event of a totaled or stolen vehicle.
Annual Percentage Rate (APR): Also called a finance rate, this is the interest rate on a loan; a percentage of the amount borrowed that a lender charges annually for the use of its money.
Learn More About Buying and Leasing a New Chevrolet Today
If you'd like to discover all your options, contact us at Steet Ponte Chevrolet. We'd be happy to provide more details, answer any questions you might have and discuss the buying and leasing options as they pertain to you in greater detail when you chat with our financing team.