Buying or leasing a car or truck is exciting, but can be complicated. Using the right words when negotiating for a vehicle can help you make the best choice and save time and money. Below are a few key terms to keep in mind. To learn more about auto financing as well as buying, leasing, and insurance, visit Ally Wallet Wise at www.allywalletwise.com
- Acquisition Fee: A processing or administrative charge included in many lease transactions. It may also be called an administrative fee.
- Agreed-Upon Vehicle Selling Price: The price you agree to pay to buy a vehicle.
- Agreed-Upon Value of the Vehicle: In a lease, the dollar amount you and the dealer determine will be used as the basis for calculating lease payments for a specific vehicle. This figure can be similar to the agreed-upon vehicle selling price in a purchase transaction.
- Allowed Mileage: The number of miles that the lease allows the lessee to drive the vehicle without paying an extra charge — usually 12,000 to 15,000 miles per year.
- Annual Percentage Rate (APR): The cost of credit expressed as a yearly rate.
- Bank Draft: When you borrow money from a bank to buy a vehicle, a bank-issued check made out to the dealership to pay the agreed-upon vehicle selling price.
- Creditor: A person or organization that extends credit.
- Down Payment: Initial payment by the customer that is used to reduce the cash price.
- Expected Depreciation: The amount by which a vehicle is expected to decrease in value over a specific period of time.
- Finance Charge: The total dollar amount the credit will cost you to finance a purchase.
- Gross Capitalized Cost: In leasing, the agreed-upon value of the vehicle and any items you pay for over the lease term and that are included in your lease balance (such as acquisition fees or a service contract).
- Lease: An agreement between the owner of a vehicle (lessor) and the user (lessee) for the use of a leased vehicle subject to stated terms and conditions for a certain length of time and for an agreed-upon payment obligation.
- Lease Agreement: The document that contains the lease terms, including terms and conditions for the use of the leased vehicle.
- Lessee: The person who has possession and use of a leased vehicle during the lease term and is a party to the lease agreement.
- Lessor: The owner of the leased vehicle.
- Lien Holder: The creditor who has a security interest in the vehicle. If the vehicle owner doesn’t make the payments on the debt as scheduled, the one holding the lien can take and sell the vehicle as full or partial payment of the debt.
- Purchase: A transaction in which a person acquires ownership of the item purchased.
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Comments
jimmie j. on December 19, 2014 at 12:50pm
turn in my lease 1st of March and lease a new 2015 Chevy Silverado 4x4 standard box this is what I plan to do been doing business with u for 3 yrs I hope this won't be a problem
lonnie h. on June 24, 2015 at 9:19pm
I want to buy another car and want to know if ally will finance me again
Ally A. on June 25, 2015 at 10:51am
Hi Lonnie, please visit your local dealership to determine whether you qualify for financing through your dealership and Ally. You can find a dealer near you using Ally’s Dealer Locator: https://www.ally.com/auto/dealer-locator/ Let us know if you have any questions, we’re happy to help!
JAMES T. on June 19, 2016 at 3:46am
I would like to know if I am eligible to pay only the interest for the month of June on my 2015 Malibu?
Ally on June 20, 2016 at 11:23am
Hi James, give us a call at 1-888-925-2559 so we can look into your specific account and discuss.
AUDRIE R. on August 15, 2016 at 3:39pm
Great Article. article , I Appreciate the insight ! Does anyone know where I might get ahold of a template Residential Real Estate Lease form to work with ?
Ally on August 22, 2016 at 10:48am
Hi Audrie, we’re glad to hear you enjoyed the article. Thanks for reading the blog!
EARL F. on August 22, 2016 at 2:27pm
I am nearing completion of my 39 mo. lease on a 2013 vehicle. Love the vehicle and undecided whether to keep it. How would end of lease price be financed by Ally if I decide to keep it and finance through Ally?
Ally on August 22, 2016 at 5:29pm
Hi Earl, give us a call at 1-888-925-2559 so we can learn a little bit more about your situation and discuss.
Thomas V. on October 10, 2016 at 3:11pm
The above is a complete lie. I leased a car 2014 Curse for 36 mths. I wanted to renew my state license plates after 24 mths had trouble trying get a copy of personal property tax receipt that I paid Ally. Ally stated I needed to go to County Court House and my problems were all mine. Unable to renew plates, I purchased the auto, paid it off in full on Sept 16th it is now October 11th and I have no title, no plates. I was told the transaction would have been much soother if I traded my car into the dealer. I have never been through so much hell for simple transaction. I own an electrical contracting firm and own 10 trucks and multiple cars and have never done this. I will never use Ally or purchase a GM product again. In plans words stick it!
Ally on October 10, 2016 at 5:24pm
Hi Thomas, we hate hearing this! Please call us at 1-888-925-2559 so a team member can look into your account and discuss further.