Acquisition Fee
A fee included in most lease transactions that typically covers administrative costs, such as the cost of obtaining a credit report and processing of lease documentation. Usually added to the total cost of the vehicle, although can also be paid up front.

Adjusted Capitalized Cost
The net amount capitalized at the beginning of a lease, equal to the capitalized cost less the capitalized cost reduction. Also referred to as Adjusted Cap Cost.

Amortized Amounts
Any options and accessories added to the negotiated vehicle cost to be paid for over the term of the lease contract.

Annual Percentage Rate (APR)
The rate of interest charged annually on credit, expressed as a percentage.

Base Monthly Payment
The portion of the monthly payment in a lease that includes depreciation, any amortized amounts, and vehicle usage costs. Taxes, maintenance, and any other fees are added to this base monthly payment to calculate the total monthly payment.

Billing Address
The mailing address to which you would like to have your monthly billing statement delivered to you. Typically, this is your home address, but can be any other address you request to have your monthly billing statement delivered, including a P.O. Box. You may update your billing address by contacting us by phone.

Capitalized Cost
The negotiated selling price of the vehicle, plus other costs included in the lease, such as acquisition fee, title and registration fees, insurance, etc. Also referred to as Cap Cost or Gross Capitalized Cost.

Capitalized Cost Reduction (Cap Cost Reduction)
An initial payment in a lease — either cash, net trade-in amount, or rebate — that reduces the capitalized cost.

Closed-End Lease
A lease in which the lessor absorbs the loss if at lease end the vehicle is worth less than the residual value. Should the vehicle be worth more, the lessee has the option to purchase the vehicle at the purchase option price and retain any potential profit. All Chrysler Financial leases are closed-end leases with purchase options.

Conventional Financing
The use of credit to finance the purchase of a vehicle over an agreed-upon duration, or term.

Depreciation
The amount of a vehicle's projected decline in value through normal use during the lease term, calculated as the adjusted capitalized cost minus the residual value.

Down Payment
An initial amount paid to reduce the amount financed and lower the monthly payment requirement. Down payment required depends on credit standing and other criteria, as well as qualifying offers.

Gap Protection
A policy or agreement that provides financial protection to cover the gap between the lease obligation and insurance settlement in the event the vehicle is “totaled” or stolen. Included at no additional cost in a Chrysler Financial Lease (not including deductible, past due amounts, or other lease-end fees).

Garaging Address (applicable for lease accounts only)
The address where the vehicle is physically kept. A P.O. Box cannot be used as a garaging address. If you are moving and need to update your garaging address, you can do so online by selecting “Update Profile“ while you are logged in to “My Account“. There may be tax implications for changes to your garaging address. Contact your local Department of Motor Vehicles (DMV) for additional information. For assistance in locating the DMV for your state, you may visit onlinedmv.com.

Lease
A contract for the use of a vehicle between a lessee and lessor, with agreed-upon terms and conditions.

Lessee
The person or organization to whom the vehicle is leased, signatory to the lease agreement.

Lessor
The organization that leases the vehicle.

Parking Ticket Administration Fee
A fee which is assessed to a lease account if a previously unpaid parking ticket for the lease vehicle was paid by the lessor. Chrysler Financial assesses an administration fee of $25 on lease accounts originating on or after January 2002, or $20 on lease accounts originating before January 2002. The fee is assessed in addition to the amount of the ticket.

Personal Property Tax
A state or locality imposed percentage tax which is assessed to owners of certain personal property, such as: automobiles and/or other vehicles, durable goods (usually excluding household goods and personal effects), stocks, bonds, etc. Personal Property Tax is assessed based on the fair market value of the property. Contact your local Department of Motor Vehicles (DMV) for additional information. For assistance in locating the DMV for your state, you may visit onlinedmv.com.

Purchase Option Price
The price determined at the beginning of a lease for which the lessee can purchase the vehicle at lease end.

Residual Value
The estimated value of the vehicle at lease end as established at the beginning of the lease. Deducted from the adjusted capitalized cost to determine the depreciation amount used in calculating your base monthly payment.

Sales Tax
A state or locality imposed percentage tax which is assessed on certain goods and/or services at the point of purchase. Sales tax on automobile leases may be imposed at the beginning of the lease or as the payments become due, depending on the state or the locality.

Security Deposit
The amount required by the lessor at the beginning of a lease to guarantee the lessee meets the terms defined in the lease. Refundable at lease end provided all terms and conditions are met and there are no outstanding charges or payments due. In certain states referred to as a Reconditioning Reserve, which differs in that at lease end it can only be applied to vehicle repair, and not to other amounts due.

Simple Interest Financing Method
A method of calculating interest that maximizes principal reduction beginning with the first payment, as opposed to other financing agreements which tailor your initial monthly installments almost entirely toward paying off interest, delaying the bulk of principal reduction.

Term
The duration of the lease or loan agreement, typically expressed in months.

Termination
The point when the terms and conditions of the lease agreement have been fulfilled. Early termination is possible but penalties are usually incurred.

Title
The legal document used to identify the owner of a vehicle. In a lease, the lessor (Chrysler Financial) holds the title to the vehicle.

Vehicle Turn-In Fee (Or Disposition Fee)
The amount due at lease-end. This fee covers costs associated with returning the leased vehicle. Please note, this fee is in addition to any over mileage charges, excessive wear and use fees, etc.