Car Lease Glossary

Acquisition Fee – This is the amount of money the dealer will charge you to process the lease.  This fee is often not negotiable.

Capitalization Cost – This is the actual cost of the vehicle and will be used to calculate your lease payment, just as the purchase price would be if you were financing the vehicle.

Cap Cost Reduction – This amount is the down payment you make at the time of lease and will reduce your payment just as a down payment does when you purchase a vehicle.

Closed-End Lease – This means that the vehicle’s residual value has been determined and stated in at the beginning of the lease contract.  Most leases work this way and ensure that the owner will not owe any extra if the vehicle is worth less than expected at the end of the lease.

Dealer Participation – This is any amount that the dealer agrees to apply toward the total cost of the vehicle to help acquire a customer’s business.

Depreciation – The amount of value that the vehicle will loose over a period of time.  Depreciation is taken into account when a dealer is setting residual values.

Disposition Fee – This fee covers the cost to prepare a vehicle for sale and the end of the lease.  Disposition fees are due at the end of you lease term.

Early Termination Fee – This is the penalty you will be assessed if you were to end your lease contract early.

Weiss is your new Toyota dealer near Ballwin!  We offer the best new and used Toyotaselection along with the best finance options in the area.  Be sure to stop by the showroom today!  Our sales and finance teams are ready to send you home in the Toyotayou want for the price you need!