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Auto Finance Glossary

Whether you’re looking up some of the most common terminology you’ll find at SETF.com and in your retail or lease contract -- or, you’re brushing up on finance terms before your next vehicle shopping experience, we’ve got you covered with all the words you need to know

A

 
Acquisition Fee A charge included in most lease transactions that is either paid up front or is included in the gross capitalized cost.
Adjusted Capitalized Cost The difference between the gross capitalized cost and the capitalized cost reduction. This amount is factored into the determination of the monthly lease payment.
Amortization Amortize, or amortization, generally means to pay for something in installments over a period of time. This usually includes an interest charge.
Amount Due at Signing or Delivery The amount due at the dealership at the time the lease agreement is signed and the vehicle is delivered. This amount generally includes the first monthly payment, the capitalized cost reduction, the acquisition fee (if not capitalized), sales/use tax, refundable security deposit(s), registration/title fees, license fees, etc.𠊊mount Financed
In a finance contract, the agreed-upon sale price of the vehicle, plus any charges for accessories, taxes, title and registration, government fees, optional products (for example, service contracts and vehicle or payment protection products), less any down payment and/or net trade-in allowance. This is the amount that is subject to finance charges.𠊊mount Owed on Trade In The amount required to settle the finance agreement with your current lender on your trade in (if applicable).
Annual Percentage Rate (APR) In a finance contract, the cost of your credit as a yearly rate. Application A request for an extension of credit, either for a retail contract or lease agreement.

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B

 
Base Monthly Payment The portion of the monthly payment in a lease that includes depreciation, any amortized amounts, and vehicle usage costs. Taxes, maintenance, and any other fees are added to this base monthly payment to calculate the total monthly payment
Base Rent Included as part of the base monthly payment, it is the amount charged in addition to the depreciation of any amortized amounts.

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C

 
Base Monthly Payment The portion of the monthly payment in a lease that includes depreciation, any amortized amounts, and vehicle usage costs. Taxes, maintenance, and any other fees are added to this base monthly payment to calculate the total monthly payment
Base Rent Included as part of the base monthly payment, it is the amount charged in addition to the depreciation of any amortized amounts.

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D

 
Base Monthly Payment The portion of the monthly payment in a lease that includes depreciation, any amortized amounts, and vehicle usage costs. Taxes, maintenance, and any other fees are added to this base monthly payment to calculate the total monthly payment
Base Rent Included as part of the base monthly payment, it is the amount charged in addition to the depreciation of any amortized amounts.

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E

 
Base Monthly Payment The portion of the monthly payment in a lease that includes depreciation, any amortized amounts, and vehicle usage costs. Taxes, maintenance, and any other fees are added to this base monthly payment to calculate the total monthly payment
Base Rent Included as part of the base monthly payment, it is the amount charged in addition to the depreciation of any amortized amounts.

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F

 
Base Monthly Payment The portion of the monthly payment in a lease that includes depreciation, any amortized amounts, and vehicle usage costs. Taxes, maintenance, and any other fees are added to this base monthly payment to calculate the total monthly payment
Base Rent Included as part of the base monthly payment, it is the amount charged in addition to the depreciation of any amortized amounts.

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