Acquisition Fee
A fee charged at the time of lease signing to cover the costs of initiating the lease.

Adjusted Capitalized Cost
The selling price of a vehicle minus the capitalized cost reduction. This amount is sometimes referred to as the net cap cost.

Amount Due at Lease Signing Delivery
The total amount due before a customer takes delivery of a vehicle. It typically includes any capitalized cost reductions, any monthly payments paid at signing, a security deposit, and title and registration fees.

Annual Percentage Rate APR
In a finance agreement, it is the cost of credit and is expressed as an annual percentage.

Base Monthly Payment
The portion of the monthly lease payment that covers depreciation, any amortized amounts, and rent charges. (Monthly sales/use taxes and other monthly fees are added to this base monthly payment to determine the total monthly payment.)

Capitalized Cost
The selling price of the vehicle plus any other amounts which are capitalized in the lease. Based on how you choose to structure your lease, your Capitalized Cost may include optional equipment, title, registration fees, license, and taxes.

Capitalized Cost Reduction
The total of any cash payment, rebates, and/or net trade-in allowance which is applied to a lease in order to reduce the capitalized cost. The capitalized cost reduction is comparable to the "down payment" made when purchasing a vehicle.

Disposition Fee
A fee charged to cover the costs incurred in preparing, transporting and selling a vehicle at the end of a lease term should a customer choose not to purchase it.

Down Payment
In a finance contract, an amount of cash and/or the value of a net trade-in allowance applied to reduce the cash selling price of a vehicle. The greater the down payment, the lower a customer's monthly payments.

Early Termination Charge
As described in the lease agreement, the amount owed if a customer chooses to end a lease before its scheduled termination date. The earlier a lease is terminated, the greater this charge is likely to be.

End of Term
The date set for lease expiration. The customer must choose a Lease End Option at this time.

Excess Mileage
Any vehicle mileage a customer has accumulated which exceeds the contractually stated mileage limit for the lease term. This typically requires the customer to pay an additional charge for each mile over the limit (see Excess Mileage Charge.)

Excess Mileage Charge
A per mile charge for miles driven over the maximum number specified in the lease agreement. The excess mileage charge is $.15 per mile at lease end. At lease signing, the customer can purchase extra miles at $.10 per mile.

Excessive Wear and Use
Damage or usage that goes beyond what is considered normal use. The lessee is responsible for repairing excess wear and tear before turning in the lease vehicle, or for paying the cost of repair if repairs are not made prior to returning the vehicle. (Please refer to your lease agreement for further explanation of wear and use.)

Extension
An increase in the length of a lease term beyond the scheduled maturity date indicated on the original lease agreement.

Federal Odometer Statement
At the time of vehicle return, the form on which the odometer reading is recorded. The customer's signature is required on this form. Completion of this statement helps to ensure that the vehicle's mileage is accurately noted.

Fees and Taxes
The total amount a customer will pay for taxes, licenses, registration, title, and official (governmental) fees over the term of your lease. Because fees and taxes may change during the term of a lease, they may be stated as estimates.

Gross Capitalized Cost
The agreed-upon value of the vehicle (i.e., price), plus any items a customer agrees to pay for over the lease term, such as taxes, registration and other fees, service contracts, insurance, and any outstanding loan or lease balance.

Gross Payoff
The total amount a lessee must pay in order to purchase a leased vehicle. The security deposit has not been subtracted from this amount.

Lease End Options
The options available to a customer at the end of a lease to either turn in or purchase a leased vehicle or lease a new vehicle.

Lease Extension
The continuation of a lease agreement beyond the original term, often one month at a time. There may be a charge for extending the lease.

Lease Inception
The start of a lease agreement.

Lease Maturity
The contractually established date on which a lease ends.

Lease Term
The period of time for which a lease agreement is written.

Lease Termination Statement
A document provided by your Dealer indicating a customer's intention to either buy or return the vehicle. This statement is combined with the Federal Odometer Statement, and is completed at vehicle return. The customer's signature is required on this form.

Lessee
The customer leasing the vehicle. The lessee is required to make payments and to meet other obligations specified in the lease agreement.

Lessor
The organization that regularly leases, offers to lease, or arranges for the lease of the vehicle.

Luxury Tax
A Federal excise tariff assessed up front (in some states) on the sale of vehicles with a selling price over $38,000.

Maintenance
The regular periodic care and upkeep of a leased vehicle. Care includes, but is not limited to, minor mechanical repairs such as brake pad replacement, oil changes, alignment adjustments, tire pressure adjustment, etc. (Please see the vehicle's recommended maintenance schedule for full details.)

Mileage Allowance
The number of miles the vehicle may be driven over the term of the lease. Mileage in excess of this limit will be subject to a per mile charge. (See also Excess Mileage.)

Money Factor
A number, often given as a decimal, used to calculate the rent charge portion of a monthly lease payment.

Monthly Sales Use Tax
The state and local taxes that a customer must pay on a monthly basis when a vehicle is leased. These payments, if any, are added to the base monthly payment and paid as part of a total monthly payment. Not all states charge monthly sales or use tax.

MSRP
Manufacturer's Suggested Retail Price often referred to as the "sticker price."

Personal Property Tax
A tax imposed by local authorities based on the assessed value of the leased vehicle on a given date each year. This tax is also known as Ad Valorem or Excise tax. State laws govern whether personal property tax may apply to a leased vehicle.

Pre-filled Odometer Statement
A Federal Odometer Statement that is pre-printed with customer and vehicle information. The pre-filled form is sent to the original Dealer in anticipation of the vehicle's return.

Pre-Inspection
A vehicle inspection that takes place prior to the return of a leased vehicle. This process provides the customer with the opportunity to have any damage properly repaired before the vehicle's return, thereby reducing any charges that might be incurred for excess wear and use.

Purchase Option
A customer's option to buy a leased vehicle at the termination of the lease agreement, at a price established at lease inception.

Purchase Option Fee
An amount a customer may have to pay, in addition to the purchase option price, to exercise any purchase option in a lease agreement.

Purchase Option Price
The price a lessee will pay to purchase the leased vehicle at the end of the lease term.

Reconditioning
The process of preparing a vehicle for sale that brings the vehicle to optimum mechanical and cosmetic condition. This can include mechanical repairs, interior and exterior cleaning, and detailing.

Refundable Security Deposit
An amount you may be required to pay, usually at the beginning ofthe lease, that may be used by IFS in the event of default or at the end ofthe lease to offset any amounts you owe under the lease agreement. Any remaining amount may be refunded to you.

Residual Value
The vehicle's value at the end of the lease term, as established by the lessor. This amount is used in calculating the base monthly payment, is fixed, and does not change during the lease term.

Termination Date
The date upon which an IFS lease account is officially closed.

Third Party Inspection
An inspection completed by an independent company not affiliated with the customer or Infiniti.

Title
A legal document that identifies the owner of the vehicle. In a lease agreement, the lessor holds title to the leased vehicle.

Total Monthly Payment
The base monthly payment plus monthly sales or use taxes and any other monthly charges.

Trade-in
The net value of a customer's vehicle credited toward the purchase or lease of another vehicle. The amount credited may be positive or negative depending on the agreed-upon value of the trade-in vehicle and any remaining balance on a previous agreement.

Vehicle Condition Report
This report details the results of a vehicle inspection. It contains information about a vehicle's physical condition in order to identify normal and excess wear and use.

Vehicle Return Date
The date upon which the vehicle is returned to the Dealer.

Wear and Use
The deterioration or damage incurred by a vehicle during its operation. This includes things such as chips, scratches, dents, stains, mileage, etc. Normal wear and use is provided for in your lease agreement. (Please refer to the Wear and Use section of your lease agreement for a description of "Normal" versus "Excess" wear and use.)