Understanding the terms used in the terms.

You won't need a law degree to comprehend a lease contract, but you'll want to become familiar with a few key terms. You'll notice a lot of these terms relate to fees and such, so remember, with One Penny Down Leasing from Morrie's, all you need is one penny with no hidden fees, charges or other payments due at signing.

Rate/Money Factor: Similar to APR in a conventionally financed deal, but not identical. Like an interest rate, you want a low money factor percentage.

Term: Length of the contract, usually 24 or 36 months, but other options may be available.

Mileage: Determined by the customer – can be as low as 10,000 miles a year or as high as 100,000 miles for the term of the lease.

Up Front Fees: Term used to refer to the money required to start a lease, such as first month payment, security deposit, sales tax, license and acquisition fee. With Morrie's One Penny Down Leasing, the upfront fee is always 1¢ and nothing more.

Acquisition Fee: Fee charged by the manufacturer for administering the lease. With Morrie's One Penny Down Leasing, the upfront fee is always 1¢ and nothing more.

Registration Fees: State-required fees for the use of the vehicle.

Sales Tax: State-required tax for the portion of the vehicle price you pay for under the lease. With Morrie's One Penny Down Leasing, the sales tax is included in the monthly payment.

Security Deposit: A refundable fee charged by the manufacturer to protect against possible damage to the vehicle during the lease. Sometimes waived at the manufacturer's discretion.

Residual Value: The percentage of the vehicle's MSRP that the manufacturer feels the vehicle will be at lease expiration – used to help calculate the monthly payment.

LEV: Lease End Value – the amount the vehicle is worth at the end of the lease.

GAP: Guaranteed Asset Protection is a form of insurance that is usually included by the manufacturer to protect against the total loss of the vehicle. It will make up the difference between the depreciated car value and the lease value.

Cash Down: Money used to lower the monthly payment – this is in addition to the up-front costs also referred to as Cap Cost Reduction.

Wear Care: An optional product designed to protect the customer against charges for damage at the end of a lease.