Lease Terms Flashcards
1
Q
The estimated value of the vehicle at the end of the lease term. The higher the _____ value, the more the car is worth at the lease-end, and the lower the customer’s lease payments.
A
Residual
2
Q
This includes the negotiated price of the vehicle plus any add-on fees or taxes that will be financed.
A
Gross Cap Cost
3
Q
Rebates, trade-In credit, or a cash down payment which reduces the Gross Cap Cost.
A
Cap Cost Reduction
4
Q
The difference between the Gross Cap Cost and the Cap Cost Reduction.
A
Adjusted Cap Cost
5
Q
The financial rate the customer is being charged. It is expressed as a multiplier that can be used to calculate the monthly payments.
A
Money Factor
