Common Terms & Definitions

A plain-English glossary of every term you'll meet in LeaseMax: your inputs, lease pricing, deal-sheet abbreviations, lender types, and LeaseMax's own words.

Leasing and LeaseMax come with their own vocabulary. You don't need to memorize any of it, but if a word or abbreviation looks unfamiliar, this page explains it in plain English. Terms are grouped by where you'll run into them: the details you enter, the numbers on your deal, the short labels on your deal sheet, the lenders behind your lease, and LeaseMax's own words.

Things you enter

VIN

The Vehicle Identification Number is the unique 17-character code for one specific car. You type it into the Vehicle's VIN number field so LeaseMax prices the exact vehicle. A VIN never contains the letters I, O, or Q (those are the digits 1 and 0).

Make & Model

The car's brand and model. After you enter a VIN, LeaseMax decodes it and shows the make, model, trim, and year back to you to confirm it has the right car.

MSRP

Short for Manufacturer's Suggested Retail Price, the "sticker price" the carmaker suggests. You enter it in the MSRP field, and it's the starting point for the deal.

Dealer Discount (Realistic / Aggressive)

The amount a dealership knocks off the MSRP, entered as a percentage in the Dealer Discount field. As you raise it, LeaseMax shows whether the discount looks Realistic (a smaller, likely discount) or Aggressive (a larger, harder-to-get one).

Lease Term

How long you lease the car, in months. You pick it from the Lease Term dropdown. A shorter or longer term changes your monthly payment.

Annual Mileage

How many miles you expect to drive each year, set with the Annual Mileage slider. The choices come from your specific car. Choosing more miles usually raises the payment a little, because the car is worth less at the end.

Down Payment

The cash you put in at the start of the lease, set with the Down Payment slider. A larger down payment generally lowers your monthly payment.

Zip Code

Your location's ZIP code, entered so pricing is accurate for where you live. Taxes, rebates, and lender programs all vary by region, so your ZIP shapes the quote.

Credit Score

A number from 300 to 850 that lenders use to judge lending risk. You enter it in the Credit Score field, and it directly affects the rate: and therefore the payment: you're offered. A ballpark figure is fine.

Things you'll see on your deal

Monthly Payment

What you pay each month for the lease. On your deal it's the large, bold dollar figure for each term and down-payment combination.

Due At Signing (total out of pocket)

The total cash you pay on day one to start the lease: your "total out of pocket." On your LeaseMax deal it bundles things like your first month's payment, tax, title, fees, and registration, so there are no surprises later.

Selling Price

The agreed price of the car after the dealer discount and rebates are subtracted from the MSRP. Your lease payment is calculated from this figure, not the sticker price.

Residual Value (RV) and Residual Percent (RV%)

The residual is what the car is projected to be worth at the end of the lease. It appears as RV (a dollar amount) and RV% (that value as a percentage of the price). A higher residual generally means a lower monthly payment, because you're paying for less of the car's drop in value.

Money Factor

The lease's version of an interest rate, shown as a small decimal. The lower it is, the less interest you pay. To turn it into a rough APR, multiply it by 2,400.

Rebates and Incentives

Money from the manufacturer or dealer that lowers the price of the car. LeaseMax checks which ones you may qualify for and asks, "Are you eligible for any of these money-saving rebates?" Applied rebates show on your deal labeled Rbt.

Acquisition Fee

A one-time fee the lender charges to set up the lease. On your LeaseMax numbers it's built in and already included, so you won't be charged it separately at the dealership.

Inception Fees (I. Fees)

The upfront fees that get the lease started (acquisition fee, dealer fees, and the like), rolled together. Shown on your deal as I. Fees.

Deal-sheet labels & abbreviations

Your deal sheet packs a lot into small labels. Here's how to read them.

Lease Options

The name of the grid that lays out monthly payments across different lease terms (the rows) and Due-At-Signing amounts (the columns) so you can compare.

The short abbreviations

RV: Residual Value (see above).
RV%: Residual Percent.
MF: Money Factor. On your main deal sheet the money factor may appear as a bare decimal with no label at all; on the other-banks sheet it's labeled MF.
I. Fees: Inception Fees.
Rbt: Rebate. (On the other-banks sheet the same thing is spelled out as Rebates.)

🎈 Balloon program

A balloon emoji (🎈) next to a payment marks a "balloon" lease program, one with a different payment structure that includes a larger final amount. On the main deal sheet, if any program is a balloon lease, LeaseMax also shows a short What is a balloon lease? section.

Vehicle Pricing Breakdown

The "Understanding Your Deal" panel that shows how your price is built up: Total MSRP, minus the Discount requested (the dollar value of your dealer discount), minus the Rebates you qualify for, to reach your Selling Price.

Selected

A badge marking the specific term or lender row that matches the term you asked for: the option LeaseMax is presenting as your deal.

Valid until

The date through which the quoted numbers are considered current. After it, pricing may change. Not a payment guarantee, and also subject to credit approval.

Who's financing the lease

Captive Lender (Dealership Bank)

The automaker's own finance arm: the bank that belongs to the car brand. It's the financing dealerships typically push, because it benefits them. LeaseMax frames the dealership's bank as carrying dealer bonuses and hidden profit.

Non-Captive Lender (Outside Bank)

A lender that isn't owned by the carmaker, what LeaseMax calls an "outside bank." An outside bank can sometimes offer the same car for a lower payment, which is why LeaseMax lets you compare these "other bank" options against more transparent, honest rates.

Lender, Rank, Spread, and BEST

On the other-banks deal sheet, LeaseMax lists several lenders side by side:

Lender: the bank or finance company funding a given offer.
Rank: each offer's position, ordered best to worst by monthly payment.
Spread: how much more per month a lender's payment is than the best offer.
BEST: marks the offer with the lowest monthly payment (a spread of zero).

"Best closest to your term."

The note shown next to the highlighted outside-bank pick on the other-banks sheet: the best outside-bank offer for the term closest to the one you requested. (See Why This Lender.)

LeaseMax words

Deal Sheet (Report)

The downloadable document summarizing your lease deal: the vehicle, pricing breakdown, lease options, and terms. LeaseMax also calls it your report, as in "Get Report!"

Quote

The set of pricing numbers LeaseMax generates for your specific inputs. It's based on the VIN you provided, subject to credit approval, and valid until the date shown.

Credits

What you spend on the dashboard to run a new deal report (1 credit when you confirm). Editing or refreshing an existing deal does not use another credit. Your balance shows in the credits badge; if you run out, LeaseMax prompts you to add more. See How Credits Work.

Common Terms & Definitions

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