Term
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Definition
| In auto sales, an amount of money, generally between 2 and 3%, that the manufacturer gives the dealer on the sale of an automobile. |
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Term
| Closed-end (walk-away) lease |
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Definition
| A vehicle lease in which you return the vehicle at the end of the lease and literally walk away from any further responsibilities. You only need to return the vehicle with normal wear and tear, and the rest is the dealers responsibility. |
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Term
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Definition
| An automobile lease option that allows you to buy the car at the end of the lease for either its residual value or a fixed price that is specified in the lease. |
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Term
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Definition
| An automobile lease stating that when the lease expires, the current market value of the car will be compared to the residual value of the car as specified in the lease; If the car is worth less, you are obligated to pay the difference, if it is worth more, you may get a refund. You do NOT want this type of lease. |
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Term
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Definition
| Fees for ending the lease early. |
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