Dictionary of automotive terms. 2015.
purchase price — The price of a vehicle that the consumer pays. Start with the MSRP and subtract any manufacturer discount and dealer discount you negotiate. Purchase price is a key determinant of the true cost of a lease. Purchase price less your down payment… … Dictionary of automotive terms
Lease purchase contract — A lease purchase contract (or lease option contract) is the abbreviated form of the appropriate term lease with option to purchase contract. It is a form of real estate purchase which combines elements of a traditional rental agreement with an… … Wikipedia
purchase option — Most closed end leases grant the lessee an option to purchase the vehicle at the end of the lease. The end of lease purchase price is usually the same as the stated residual value. Check your lease contract before signing to ensure that there is… … Dictionary of automotive terms
price — See basic price end of lease purchase price final purchase price fixed price selling list price manufacturer s suggested retail price one price selling purchase price sticker price … Dictionary of automotive terms
buy at end-of term interest rate — The effective net interest rate for the lease if, at the end of the lease, the car is purchased at the end of lease purchase price … Dictionary of automotive terms
Lease Option — An agreement that gives a renter the choice to purchase a property during or at the end of the rental period. As long as the lease option period is in effect, the landlord/seller may not offer the property for sale to anyone else. When the term… … Investment dictionary
price — A fixed value of something. Prices are usually expressed in monetary terms. In a free market, prices are set as a result of the interaction of supply and demand in a market; when demand for a product increases and supply remains constant, the… … Financial and business terms
Fixed Price Purchase Option — The right, but not the obligation, to buy a leased item at a predetermined price. With a fixed price purchase option, the purchase price is established when the lease terms are agreed upon. The lease agreement should also describe when the option … Investment dictionary
Fair Market Value Purchase Option — The right but not the obligation to buy a leased asset at the end of the lease term for a price that represents the item s then current worth. The Fair Market Value Purchase Option does not provide the purchase price in advance, but as long as… … Investment dictionary
Bargain Purchase Option — An option in a lease agreement that allows the lessee to purchase the leased asset at the end of the lease period at a price substantially below its fair market value. The bargain purchase option is one of four criteria, any one of which, if… … Investment dictionary
