Annual Percentage Rate (APR)
A measure of the cost of credit expressed as a yearly rate. Each province requires various items to be included in the calculation of the APR in addition to interest.

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.

Buyer
The person who signs the Conditional Sale Contract for vehicle purchase.

Closed-End Lease
All Chrysler Financial Gold Key Leases are closed-end leases. When you return your vehicle at lease maturity, Chrysler Financial absorbs the loss if it is worth less than the established residual value. In other words, the residual risk is "closed" to you. You will remain responsible for any excess wear and tear charges, excess kilometre charges or other amounts that may be due and owing under the lease.

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

Credit Application
The formal request for credit. It usually includes your name, address, Social Insurance Number (optional) and date of birth. By signing the application, you are giving Chrysler Financial authorization to check your credit history and to collect, use and disclose your personal information for the purposes set out in the credit application.

Depreciation
The amount of a vehicle’s projected decline in value through normal use during the lease term.

Down Payment
An initial amount paid up front to reduce the amount financed. You can also reduce the amount financed when you trade a vehicle, depending upon the balance owing on the trade-in.

Excess Wear and Tear
Excess wear and tear is wear and tear to a vehicle that is above expected normal wear and tear. To help you determine if you will be charged for excess wear and tear on your leased vehicle. Chrysler Financial has developed the "worry-free" process. See your retailer or visit the Learning Centre to read more details.

GAP Protection
If your leased vehicle is stolen, damaged beyond repair or destroyed, there may be a shortfall (gap) between the proceeds of your insurance that Chrysler Financial receives and the full balance owing by you under the lease. Rather than having to pay the whole amount of this shortfall, in circumstances where GAP Protection applies you will only be required to pay the amount of the insurance deductible together with any outstanding charges owing by you at the time Chrysler Financial receives the insurance proceeds. GAP Protection is not insurance and is only available through Chrysler Financial on the Gold Key Lease.*

* See your Gold Key Lease Agreement for conditions and exclusions.

Guarantor
A person who is guaranteeing the payment and performance of your obligation under a lease or Conditional Sale Contract.

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 (e.g. Chrysler Financial).

Open-End Lease
In an open-end lease, the lessee is responsible for the residual value. If you return your vehicle at lease maturity, you are responsible for any shortfall between the residual value and the net proceeds from the sale of the vehicle. In the event that the net proceeds exceed the residual value, this surplus would be paid to you (after deduction for any other amounts that may be owing by you under the lease). Open-end leases are only available for commercial accounts through Chrysler Financial's Commercial Finance Options program.

Purchase Option Price
At lease-end, you have options. One such option that may be available under your lease is to purchase the vehicle at a predetermined price plus applicable taxes. This predetermined price is listed in your agreement.

Residual Value
The estimated wholesale value of your vehicle at lease maturity predetermined at the signing of the lease.

Security Deposit
A refundable amount that the lessee must pay to the leasing company at the beginning of the lease. This deposit will be returned if all of the terms and conditions of the lease are met, otherwise it will be applied against your lease obligations.

Term
The duration of the lease or conditional sale contract, typically expressed in months.