This term indicates the amount a customer has to pay in order to terminate a lease in advance of the expiration date.
The accounting value of the vehicle. This does not necessarily represent its market value.
Also known as a "Walk Away" lease where you are only responsible for excess kilometres, body damage and worn out tires at the end of the lease.
The net amount after the down payment that the lease is calculated on.
This amount is paid up front to lower your monthly payments or make a more expensive vehicle affordable.
The ending of a lease before the scheduled termination date. Charges may apply if the vehicle is worth less than the book value.
The amount by which the market value of your vehicle exceeds the book value or loan balance.
Independent Leasing Company
A company like Stampede Leasing that can offer any make of vehicle. Most importantly we are direct lenders not brokers.
The distance you are able to drive without incurring additional charges. Since the Residual Value is based on your estimated driving, it is best to structure a lease in consideration of your driving habits.
A contract between a lessor and a lessee for the use of a vehicle or other equipment, subject to stated terms and conditions, for a specified period and at a specified payment.
The number of months a lease will run.
Or Lease Renewal. When you want to keep your vehicle past the termination date and a new lease is negotiated.
A contract in which the lessee guarantees that the leasing company will realize the residual value at the end of the lease.
Option to Purchase
The amount you can pay to purchase a leased vehicle at the end of the lease term (Taxes excluded).
The balance owed on a lease prior to the termination date.
The most popular method of payment whereby your fixed monthly payment is debited directly from your bank account.
Refundable Security Deposit
An amount paid up front that is held by the leasing company to cover any unpaid bills, mileage fees or repairs at the end of the lease term.
This is the book value to which a vehicle is depreciated during the term of the lease
Leasing of off-lease or previously owned vehicles.
- Cracked or ripped plastic and chipped glass.
- Dents to the body that are larger than the size of a credit card.
- Mismatched or worn out tires.
- Missing summer or all-season tires.
- Serious mechanical problems, including any non-operating feature of the vehicle like the air conditioning.
- Missing keys and remotes.