LEASE TERMS

Black Book Value:
Is the amount identified as the clean value for that particular vehicle as determined by the "Canadian Black Book" published by Wm. Ward & Sons Ltd. If there is excess mileage or any accidents (declarations) on the vehicle, it may be determined that the vehicle is not clean and falls in another category like rough. Also is true if the vehicle has less than average mileage and has been kept in better than average condition it may be considered extra clean. If you are interested in finding out a value for your used vehicle please fill out this contact form or call us at 905-548-6608.

Capitalized/Vehicle Cost or Cap Cost: 
This is the selling price of the vehicle prior to any additional costs.

Declarations:
Conditions of a vehicle which include accidents in excess of $3000, out of province and out of country registrations. Under the Ontario Motor Vehicle Act these must be disclosed.

Down Payment:
The pre-tax amount that the customer is reducing the Capitalized Cost against which the lease payment is based.

Due Upon Signing / Cash on Delivery (COD): 
All amounts due to be collected from the Lessee upon delivery of the vehicle and forwarded to Action Auto Sales and Leasing. These include:

• Down Payment
• First or Pro-Rata monthly payment
• Action Auto Sales and Leasing will Charge registration & PPSA fees
• Applicable taxes on above
• Security Deposit (no tax applied)

Extended Warranties:
Warranties that the customer may purchases to have capitalized into the cost of the vehicle lease. These are usually facilitated through a 3rd party warranty company.

HST / GST / PST:
Sales Tax which is a percentage of the lease cost and is dependent on the Province. In Ontario the tax is called HST and is calculated at 13%. Other provinces have GST (Good and Services Tax) some provinces carry a Tax called PST (Provincial Sales Tax). These Taxes carry different rate depending on the province that they are tied to.

Insurance:
Life and Disability Insurance that the customer may purchase to have capitalized. This does not refer to or include the vehicle insurance. This may or may not be available for self- employed or sole proprietors. This is not available for Commercial Businesses leasing in the Company name.

MSRP (Manufacturer Retail Selling Price): 
Is the Value manufacturer determines as the retail suggested selling price of the vehicle. This is applicable to new equipment and vehicles only.

Vehicle Cost/Net Capital:
The total capital cost of the vehicle consisting of selling price plus any additions less down payment and/or trade-in.

Pro Data Rent / Prorated First Moths Payment:
Amount calculated up front for a partial month payment based on a 30 day month.

Rental / Lease Payment:
The combination of monthly depreciation and the monthly interest charge. Applicable taxes are calculated on top of this amount. Total amount is the payment that the Lessee is liable to pay each month during the lease contract.

Residual Value:
This is the value of the vehicle at the end of the lease term. This value is guaranteed by the Lessee. There are 2 types of end residuals Open Ended and Closed Ended.

Term:
The intended length of time of the lease contract denoted in months.

Trade-in:
The equity resulting from a trade in of an Action Auto Sales and Leasing vehicle. This is the amount the Dealer is willing to allow for the vehicle minus the lien payout.

Vehicle Options:
Items and accessories that have been added to the vehicle that was not stock or done at the factory.