Auto Lease - A method of financing a car. Rather than an auto purchase, you essentially rent a car for a predetermined period of time. At the end of the car lease, depending on your car lease agreement, you can return or purchase your car.

Auto Lease Agreement - The contract that defines the terms and conditions of a car lease.

Auto Loans - A loan to pay for the purchase of a new or used vehicle.

Balloon Payment - A large payment at the end of lease or a loan.

Base Monthly Payment - The portion of your monthly car payments that goes to depreciation over the life time your auto lease. It is calculated as (Net Capitalized Cost Residual) / (the number of months in a vehicle lease).

Best Car Lease Deal - A lease where the auto lease company offers a special deal on a car lease. For example, where the car sale price is discounted, the car lease company offers a vehicle rebate, or the loan interest rate is low. Often best car lease deals are offered for cars that have a low depreciation, such as Honda, Mercedes or Lexus.

Blue Book Value - The wholesale price that an auto dealer pays to buy a used car, which is published by Kelley Blue Book.

Body Type - The distinguishing characteristics of a car, such as the number of doors, windows, way it carries cargo (hatchback, sedan, fastback, sport, etc.)

Broker - A professional that represents a buyer and/or seller and assists in negotiating the contract.

Business Lease - A car lease of one of more vehicles for commercial purposes.

Buy Lease - A type of comparison that calculates monthly car lease and auto loan payments, as well as total lease costs versus the total costs for purchasing a car.

Buy Leased Car - Either the buyout of a car at the end of your lease, or buying a car that was previously leased by someone else.

Buyer's Market - An economic market where conditions are in favor of the buyer.

Cap - A provision of an ARM that limits how much the interest rate or mortgage payments can increase.

Capitalized Cost - The value of your car at the start of your auto lease.

Car Buying Services - Websites, like FastFind™, which can help consumers search for better offers from car dealerships.

Car Lease - See auto lease.

Car Lease Assumption - When you end a car lease before the term is over and have someone else take over your lease.

Car Lease Deal - The special offers made by a leasing company to promote car leases. For example, where the sale price is discounted, the car lease company offers a rebate, or the interest rate is low.

Car Lease Refinance - When you end an existing lease for a vehicle and start a new lease for the same car.

Car Lease Swap - The transfer of an auto lease to another party, such as a leasing company, before the lease is finished.

Car Lease Termination - When you end a car lease before the lease contract date.

Car Lease Trade - Trading a car that is still under lease, but whose term hasn’t been reached, for another leased car.

Closed End Lease - Type of lease where you can buy the car if you wish to, or you can return it with no obligations.

Closing - The process of transferring ownership from the seller to the buyer.

Depreciation - The amount that an item, such as a car, or real estate can go down in value over time. Typically causes for real estate depreciation are wear and tear on the property or a change in the neighborhood.

Disposition Fee - A car leasing company fee charged at the end of an auto lease to refurbish a car for resale.

Due at Signing - The amount of money you need to pay to a car leasing company when an auto lease is signed.

Early Termination Fee - A fee charged by car leasing companies for ending your car lease before the end of the predefined lease term.

Excess Mileage - The number of miles driven in excess of a specific number defined in your car lease.

Excess Wear & Tear - A level of physical wear on a car in excess of a level defined in your car lease.

Financing - A way to raise funds or capital for buying a new car, getting a mortgage on a house, or making purchases on a credit card.

Fixed Expenses - Expenses that are paid each month and that remain the same, such as mortgage, school tuition, car insurance, etc.

Gross Capitalized Cost - The selling price of your car.

Guaranteed Loan - When a lender offers a loan with the understanding that the loan is guaranteed to be repaid by another party if the borrower defaults.

Household Income - The total income made by all individuals in a household. This includes: salaries, bonuses, child support, social security, unemployment, etc.

Lease Inception Cash - The total amount of money you need to pay when starting a car lease. This includes first month's payment, any tax and title fees, your down payment (e.g., capitalized cost reduction), and security deposit.

Lease Luxury Car - Where you lease a high-end and more expensive vehicle, which has a lower depreciation, rather than buying a car outright.

Lease Residuals - The value of the car at the end of the lease based on MSRP.

Line - The manufacturer name for a family of cars with certain features in common, such as body type, cab type, chassis, etc.

Make - The manufacturer name for a type of car

Model - The manufacturer name for a group of cars of the same body type, make, line, and series.

Model Year - The year that a specific model of car was released by a manufacturer. Note: This can cover a two-year period.

MSRP - Manufacturer's Suggested Retail Price for an auto. This is also called "sticker price.”

Purchase Agreement - A contract signed by the buyer and seller that indicates the conditions under which an item or property will be sold.

Purchase Contract - An agreement between the buyer and seller that indicate the prices and terms of the sale of the property or item.

Purchase Option Fee - The fee charged if the person leasing a car decides to buy the vehicle at the end of the car lease.

Purchase Option Price - The selling price of your car if you buy it at the end of a car lease.

Qualifying Ratio - The ratio of fixed monthly expenses to monthly income. This ratio is used by lenders to determine how much to loan to a homebuyer.

Refinancing - Paying of one loan with the proceeds from a separate loan that is secured by the same property.

Residual Value - The amount your car leasing company estimates your car will be worth at the end of your car lease, generally defined as a percentage of MSRP.

Security Deposit - A payment made prior to entering an auto lease that is, usually, equal to one month's payment as security against excess wear and tear on your car.

Seller's Market - An economic market where conditions are in favor of the seller.

Series - The manufacturer name for a subtype of car model, which indicates price, size and specific features.

Term - The time period for which a loan must be repaid.

Trade-in value - The value that a car dealership will give you for your existing car as a deposit on a new car.

Upside down car loan - Where the amount of a car loan is more than the value of a vehicle.

Variable Expenses - The expenses that change on a monthly basis. These expenses can include: food, utilities, credit card purchase, etc.

VIN number - The unique Vehicle Identification Number that is assigned to each vehicle. Think of it as a Social Security Number for transportation. Current VINs are 17 digits long.

Wear and tear - The normal damage done to a vehicle over its lifetime.