You know what the residual and money factor is already and how it relates to car leasing. There are several other things you need to know. There are all sorts of fees written into the lease. The acquisition fee is non-negotiable, this fee is charged by the bank to do the lease. It is kind of like a loan origination fee. Typically, this fee ranges from $595 to $795. A lot of dealers are bumping this fee up to make a few hundred dollars more on the lease. You should call the bank directly and ask what their acquisition fee is, that way you will know if the dealer is trying to jack up the fee.

Another vehicle leasing fee is the disposition or termination fee, this fee can be negotiated. You should tell the dealer once the deal is done that you want the disposition or termination fee waived. This fee will appear on the contract and all it is, is a another fee the bank gets at the end of the lease. It typically ranges anywhere from $250 to $450.

If you pay the acquisition fee, you shouldn't have to pay another fee at the end of the lease.

The breakdown on a vehicle lease contract is as follows:

Gross Capitalize Cost: What you are actually buying the car for.

Capitalized Cost Reduction: If you put any additional money down on the lease.

Adjusted Cap Cost: The amount the lease payments are figured on.

Residual value: The amount guaranteed the vehicle will be worth at lease's end.

Depreciation: The amount charged for the vehicles' decline in value over the lease term.

Rent charge: The interest you will pay over the term of the lease.

Total of Base payments: The total of payment over the life of the lease.

Base monthly payment: The monthly payment without tax included.

Monthly sales/use tax: The taxes charged each month.

Total payment: The total payment due each month including taxes.

The lease contract also has to disclose the breakdown of your start up cost.

Total amount due at signing usually consists of the following charges:

Cap cost reduction: Any additional cash you put down. I don't recommend.

Sales tax on cap reduction: You have to pay tax on the money you put down.

1st month's payment: You have to pay the first month the day you sign the lease.

Security deposit: You shouldn't ever pay one of this, always have it waived.

Title, registration, and licensing fees: Can't get out of paying these.

Acquisition fee: The bank charge for writing the lease.

Dealer doc fee: Always try to negotiate this down or away.

For a complete list of A-Z leasing terminology, see LeaseTrader.com.