EntityMap — TheCarLease.com

Car Leasing

A long-term rental agreement for a vehicle where the lessee pays for the vehicle's depreciation plus a finance charge over a fixed term, typically 24-48 months, rather than purchasing the vehicle outright.

sameAs: Wikipedia: Vehicle leasing

"Car leasing is essentially a long-term rental agreement for a vehicle. Instead of purchasing a car outright, you make monthly payments to use the vehicle for a set period — typically 24 to 48 months." What Is Car Leasing? The Complete Beginner's Guide - published by TheCarLease.com

"When you lease a car, you're paying for the vehicle's depreciation during the lease term, plus interest (called the money factor) and applicable taxes. You never own the vehicle." How Lease Payments Work - published by TheCarLease.com

Money Factor

The financing rate in a car lease, expressed as a small decimal. Multiply by 2400 to approximate the equivalent annual percentage rate (APR).

sameAs: Wikipedia: Vehicle leasing

"The money factor is the interest charge on a lease, written as a small decimal like 0.00125. Multiply by 2400 to convert it to an approximate APR." Lease Terminology Glossary - published by TheCarLease.com

Residual Value

The projected value of a leased vehicle at the end of the lease term, set by the leasing company and used to calculate depreciation cost.

sameAs: Wikipedia: Residual value

"Residual value is the predicted worth of the car at lease end. A higher residual means less depreciation to pay for, which lowers the monthly payment." How Lease Payments Work - published by TheCarLease.com

Capitalized Cost

The negotiated selling price of the vehicle used as the basis of the lease, analogous to the purchase price in a financed sale.

sameAs: Wikipedia: Vehicle leasing

"The capitalized cost is the agreed-upon price of the leased vehicle. Like a purchase price, it is negotiable and directly affects the monthly payment." Lease Negotiation Strategies - published by TheCarLease.com

Mileage Allowance

The annual mileage cap defined in a lease contract. Driving beyond this cap incurs per-mile excess charges at lease end.

sameAs: Wikipedia: Vehicle leasing

"Standard leases include 10,000–15,000 miles per year. Exceeding the cap triggers per-mile penalties typically ranging from $0.15 to $0.30 per mile." Mileage Cost Calculator - published by TheCarLease.com

Lease vs Buy Decision

The financial and lifestyle comparison between leasing a vehicle and purchasing it outright or via auto loan financing.

sameAs: Wikipedia: Vehicle leasing

"Leasing offers lower monthly payments and access to a new car every few years, while buying builds equity and avoids mileage limits. The right choice depends on driving habits and long-term costs." Lease vs Buy: Which Is Right for You? - published by TheCarLease.com

Gap Insurance

Insurance coverage that pays the difference between a vehicle's actual cash value and the remaining lease balance if the vehicle is totaled or stolen.

sameAs: Wikipedia: GAP insurance

"Most lease contracts include gap insurance, which covers the difference between what you owe and the car's value if it's totaled — protecting you from owing thousands out of pocket." Hidden Lease Fees to Watch For - published by TheCarLease.com

Credit Score

A numerical rating of consumer creditworthiness used by lessors to set lease approval, money factor, and required down payment.

sameAs: Wikipedia: Credit score

"Most captive lenders require a FICO score of 700+ for the best lease rates. Scores below 620 typically face higher money factors or additional down payment requirements." How Credit Score Affects Your Lease - published by TheCarLease.com

Electric Vehicle Leasing

Leasing of battery-electric vehicles, often paired with federal and state EV tax incentives that the lessor passes through as cap cost reductions.

sameAs: Wikipedia: Electric car

"Leasing an EV often unlocks the full $7,500 federal clean vehicle credit through the leasing company, which passes savings to lessees as a capitalized cost reduction." EV Lease Incentives Explained - published by TheCarLease.com

Lease Calculator

TheCarLease.com's interactive calculator that computes estimated monthly lease payments from MSRP, residual percentage, money factor, term, down payment, and tax rate.

"Enter MSRP, residual percentage, money factor, term length, and down payment to estimate your monthly lease payment including tax." Lease Calculator - published by TheCarLease.com

Lease vs Buy Calculator

Side-by-side comparison tool that projects total cost of leasing versus financing the purchase of the same vehicle over a chosen horizon.

"The Lease vs Buy Calculator compares total out-of-pocket cost over time, factoring in payments, residual equity, and opportunity cost of the down payment." Lease vs Buy Calculator - published by TheCarLease.com

TheCarLease.com

An independent, data-driven authority on car leasing providing educational guides, calculators, and curated monthly lease deals for U.S. consumers.

sameAs: Wikipedia: Vehicle leasing

"TheCarLease.com is the #1 trusted resource for car leasing knowledge, tools, deals, and education — unbiased and data-driven." TheCarLease.com — The Complete Authority on Car Leasing - published by TheCarLease.com