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 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.
The person who signs the Conditional Sale Contract for vehicle purchase.
When you return your vehicle at lease maturity Mercedes-Benz Financial Services 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.
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 Mercedes-Benz Financial Services authorization to check your credit history and to collect, use and disclose your personal information for the purposes set out in the credit application.
The amount of a vehicle's projected decline in value through normal use during the lease term.
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.