Confused by credit-speak? Our glossary of terms can help.

Acquisition Fee
A charge included in most lease transactions that is either paid up front or is included in the gross capitalized cost.

Adjusted Capitalized Cost
The difference between the gross capitalized cost and any capitalized cost reduction. Also referred to as the Adjusted Capitalized Cost. This amount is used to calculate the lease payment.

Amount Financed
The amount of credit provided to you or on your behalf. This means the agreed upon sale price of the vehicle, plus any charges for taxes, title, license fees, service contracts, vehicle protection products, less any down payment including any net trade-in allowance. This is the amount that is subject to finance charges and other amount you finance.

Annual Percentage Rate
The cost of your credit expressed as a yearly rate.

Capitalized Cost Reduction
In a lease contract, the amount of any net trade-in allowance, rebate, non-cash credit, or cash paid that reduces the gross capitalized cost.

Closed End Lease
A type of lease in which the lessee is not responsible for the value of the vehicle at the end of the lease. The lessee is liable for excess mileage and excessive wear and use. This is also called a net lease, or walk-away lease. This is the only type of lease Toyota Financial Services (TFS) utilizes.

Down Payment
The amount of cash or net trade-in allowance applied to reduce the cash sales price of a vehicle purchased in a credit sale transaction. A down payment helps lower your monthly payment as well as establish equity in your vehicle.

Early Termination
When a lease is ended by the lessee returning the lease vehicle to the lessor before the scheduled maturity date. Early termination charges may be substantial.

Excess Mileage Charge
Leases generally contain a mileage limitation to prevent excess mileage from being driven and resulting excess depreciation of the vehicle. A set mileage allowance is disclosed in a TFS lease agreement. If this limit is exceeded, the lessee is charged for each mile driven exceeding the allowable mileage, as disclosed in the lease (e.g., $0.15 per mile). However, if at lease inception, you feel you will be driving more than is set forth in the lease, you can add the anticipated excess mileage (at $.10 per mile) to your lease to be paid as part of your monthly payment.

Excessive Wear and Use
Leases contain specific standards for excessive wear and use, based upon Toyota Financial Services' standards. Included are such items as missing parts, scratches, dents, mismatched/bald tires, cracked glass, ripped/torn/burned interior, and inoperable mechanical parts. At the end of the lease, if the lessee does not purchase the vehicle, the lessee must either repair the excessive wear and use or pay the lessor the estimated cost to repair.

First Monthly Payment
Toyota Financial Services requires that lease payments be made at the beginning of each monthly period. Therefore, the first monthly lease payment is due at the time of lease signing.

Gross Cap Cost
Also referred to as the gross capitalized cost, the value of the leased vehicle agreed upon by you and the dealer, plus any items you pay for over the lease term such as taxes, service contracts, insurance, and any prior credit or lease balance.

Lease
A contract between lessor and lessee for a specified time period and a specific payment. The title to the car remains in the name of lessor as owner unless and until the lessee exercises his/her purchase option.

Lessee
The customer who signs a lease with the lessor and pays for use of the vehicle.

Lessor
The Toyota dealer and, after assignment, the financial institution to which the lease is assigned. The party leasing the vehicle to the lessee, the actual owner of the vehicle and the lease (e.g., leasing company, dealer, or financial institution).

Low Miles
The annual mileage calculated into a lease payment under Toyota Financial Services' Low Mileage Lease Program (12,000 miles/year). A charge is assessed for any mileage driven that exceeds this limit.

Manufacturer's Suggested Retail Price (MSRP)
The retail price of the vehicle as recommended by the manufacturer--often called the sticker or list price.

Mileage Option
Standard Miles: The annual mileage Toyota Financial Services assumes a vehicle will be drive, when calculating a lease payment (15,000 miles/year). A charge is assessed for any mileage driven that exceeds this limit. Low Mileage option also available. See Low Miles above.

Monthly Payment
The monthly amounts of money paid during term of retail finance or lease contract.

Purchase Option
An option in a lease that allows the lessee to purchase the vehicle during or at the end of the lease term for a specified price disclosed in the lease.

Purchase Payoff Amount
Official fees and taxes and documentation fees charged in connection with the purchase or any amounts necessary to meet legal selling requirements plus your adjusted lease balance, if any.

Refundable Security Deposit
An amount collected by the lessor at the beginning of the lease to ensure the lessee's compliance with the terms of the lease. The security deposit is generally refundable at lease end, provided there are no excess mileage, excessive wear, or use charges, outstanding parking tickets, or other unpaid amounts.

Residual Value
The projected value of the vehicle at lease end that is used in calculating the monthly payment.

Retail Installment Sales Contract (Finance Contract)
A contract for the sale of the vehicle between the creditor and the buyer, in which the creditor agrees to finance the sale under the terms set forth in the contract. The dealer is the seller and creditor on the contract, which is later assigned to a secondary finance source, such as TFS.

Sales Price
The value of a purchase agreed upon between the seller and purchaser. In the payment estimator on this site, the MSRP for the model of the vehicle you selected with the most popular combination of options in your area is used as the sales price.

Scheduled Termination
The end of the lease term, as called for in the lease. It is also referred to as the scheduled maturity date.

Standard Miles
The annual mileage Toyota Financial Services assumes a vehicle will be driven when calculating a lease payment (15,000 miles/year).

Term
The duration of the finance or lease contract, usually expressed in months (e.g., 24 months, 36 months).

Trade-In Value
The net value of a vehicle credited toward the purchase or lease of a vehicle agreed upon by you and your dealer.

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