| A | B |
|---|
| invoice price | the price the dealer pays the manufacturer |
| base price | the price of a vehicle with standard equipment |
| manufacturer's suggested retail price | base price + price options installed by manufacturer + manufacturer's transportation charge |
| sticker price | dealer's initial asking price as found on the sticker in the vehicle window |
| up front costs | costs when signing a lease--deposit, taxes, and registration fees |
| leasing | monthly payments in exchange for exclusive use of vehicle for a time |
| capitalized cost | price for a leased car |
| capitalized cost reduction | payment similar to down payment that results in lower monthly payment |
| lease term | length of the lease--usually, 24, 36, or 48 months |
| option to purchase | at end of lease, the alternative to purchase the leased vehicle |
| residual value | the worth of a leased vehicle at the end of the lease |
| installment loan | a loan to be repaid in equal payments |
