Best Buy Auto Leasing LLC

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  • NY: (718) 701-8603
  • FL: (305) 851-2399
  • CA: (818) 629-2420

Car Leasing Terms and Definitions

Acquisition Fee (aka BANK FEE)
Fee charged by a lessor to cover the administrative costs of preparing, approving and administrating the lease. May be paid up front or included in the gross capitalized cost.

Adjusted Capitalized Cost
Amount capitalized at the beginning of the lease, after adding any fees or other charges to be included, and subtracting any capitalized cost reductions, such as rebates, trade-in allowances and cash reductions.

Allowable Mileage: This is the number of miles you are allowed to drive over the term of the lease. Often this is stated as the number of miles per year you can drive. The average lease allows 15,000 miles a year. If more miles are needed to fit your driven needs we can accommodate this for you. On a three-year lease, that means you can drive a total of 45,000 miles. If the allowable miles are exceeded, you typically must pay between 10 and 17 cents per mile. See Excess Mileage below.

Capitalized Cost
Often used to refer to the negotiated selling price of a vehicle to be leased. May be used to refer to the gross capitalized cost or the adjusted capitalized cost.

Capitalized-cost Reduction
The total of any cash payment, trade-in allowance or rebate used to reduce the gross capitalized cost. The capitalized cost reduction is subtracted from the gross capitalized cost to get the adjusted capitalized cost. Here at Best Buy Auto Leasing we structure all our leases with all rebates, discounts and, dealer cash.

Captive Finance Company

Leasing or finance company that is owned by or otherwise associated with a particular vehicle manufacturer. Generally these leases are known as a Sub Vented Lease. See Sub Vented Lease Below.

Closed-end Lease

A Lease that allows the lessee to return the vehicle at the end of the lease term with no further financial obligation, assuming that the lessee has complied with all of the terms of the lease. The lessee may be responsible for a disposition fee, if it is part of the lease agreement. There may be additional charges according to the terms of the lease for any excess mileage or excess wear. The lessee is not responsible for any difference between the residual value, as stated in the lease, and the actual value of the vehicle at the end of the lease. At Best Buy Auto leasing (bestbuyleasing.com) most of our leases are Closed-end. *We only use Open-Ended leases for commercial and some high-end Exotic car leases.

Depreciation
The amount the vehicle declines in value over the term of the lease. The depreciation may be calculated by subtracting the residual value from the adjusted capitalized cost. Using this method, the depreciation amount will also include any amounts that were added by agreement to the price of the vehicle to arrive at the gross capitalized cost.

Disposition Fee
The fee charged by the lessor if the lessee does not purchase the vehicle at lease-end, for costs associated with preparing the vehicle for resale and selling the vehicle. The disposition fee must be disclosed in the lease agreement.

Early Termination
Ending a lease before the scheduled termination date. The lessee will typically be required to pay an early termination charge as described in the lease agreement.

Early Termination Charge
The fee charged to a lessee in the event of an early termination of a lease. Penalties vary from lease to lease and the method of calculation is determined at lease inception and explained in the lease agreement.

Early Termination Payoff
The total amount the lessee owes if the lease is terminated early, before subtracting any credit for the value of the vehicle. The payoff is calculated as described in the lease agreement.

Excess Mileage Charge
The fee charged for each mile in excess of the predetermined mileage limit, as set forth in the lease agreement. The excess mileage charge varies depending on the type of vehicle, and is typically between $0.10 and $0.17 per mile.

Excessive Wear and Tear Charge
A charge collected by the lessor at the end of the lease for damage to the vehicle that is beyond what is allowed by the terms of the lease. In a consumer lease, excess wear and tear or normal wear and tear will be specifically defined.

Gap Coverage
A type of insurance coverage that covers the difference between the payoff of the lease and the amount covered by other insurance coverage, when a vehicle is damaged or stolen during the term of the lease. Most gap coverage requires that the lessee not be in default under the terms of the lease.

Gross Capitalized Cost
The negotiated price of the vehicle, plus any other amounts you agree to include in the capitalized cost, such as fees, insurance premiums, service contract premiums or prior vehicle loan or lease payoff.

Lease Term

The period of time covered by the lease agreement.

Lessee
The party entitled to possession and use of the vehicle according to the terms of the lease.

Lessor
The legal owner of the property that is leased.

Loan Origination Fee
The fee charged by a lender to prepare loan documents, make credit checks, inspect and sometimes appraise a property; usually computed as a percentage of face value of the loan.

Mileage Allowance or Mileage Limit
The total amount of mileage the vehicle may be driven over the term of the lease, without incurring liability for additional mileage charges.

Money Factor
A number often used by lessors to calculate the average monthly rent charge portion of the lease payment.

MSRP
The Manufacturer's Suggested Retail Price.

Open-end Lease
Type of lease in which the lessee is responsible for the difference between the residual value and the realized value at the end of the lease. The lessee may be entitled to a refund if the realized value is greater than the residual balance.

Purchase Option
The lessee's right to purchase the leased vehicle, either at the end of the lease or during the lease term, as specified in the lease agreement. The lease agreement may or may not include a purchase option.

Purchase Option Fee
Fee in addition to the purchase price that is required to exercise a purchase option, according to the terms of the lease.

Realized Value
Value assigned to the vehicle at lease termination. Check your lease agreement for a definition that may range from the value actually received by the lessor, the highest offer received by the lessor, the vehicle's "fair market value," the wholesale value or the retail value.

Rent or Rent Charge
Portion of the monthly lease payment that is in addition to the depreciation and amortized amounts.

Residual Value
The lease-end value of the vehicle, established at the beginning of the lease. This value is used in determining the monthly lease payment. The residual value is also used to determine the depreciation and other amortized amounts that go into determining the monthly lease payment.

Security Deposit
Refundable deposit, usually equal to one monthly payment, collected by the lessor at the beginning of the lease to offset any amounts due under the term of the lease.

Sub Vented Lease
A lease that is subsidized by the manufacturer or other lessor. Many sub vented leases offer lower monthly payments by utilizing a higher residual value than other lessors, or by offering a lower rent portion of the monthly payment.

About Us

Welcome to Best Buy Auto Leasing LLC (Bestbuyleasing.com), your source for Auto Lease Deals in New York, New Jersey, Connecticut, and beyond. We specialize in getting you the best Auto Lease Deals possible for all cars, any make and model. If you're in the market to buy or lease a car in the tri-state area, or anywhere in the US, CLICK HERE for quick auto lease price quotes today.

Best Buy Auto Leasing LLC
380 Kings HWY
Brooklyn, NY 11223
Toll-free: (866) 621-0646
Local: (718) 701-8603
Fax: (347) 462-2473

Best Buy Auto South (Call center only)
801 Brickell Avenue, Suite 900
Miami, Florida, 33131
Local: (305) 851-2399
Fax: (347) 462-2473

Best Buy Auto West (Call center only)
10880 Wilshire Blvd., Suite 1101
Los Angeles, California, 90024
Local: (818) 629-2420
Fax: (347) 462-2473

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