Skip to menu Skip to main content Skip to buttons Skip to banner Skip to options Skip to footer


  • Acquisition Fee

    A charge included in most lease transactions that is either paid up front or is included in the gross capitalized cost.

    Adjusted Capitalized Cost

    The difference between the gross capitalized cost and the capitalized cost reduction. This is the amount used to calculate the lease payment.

    Amount Financed

    In a finance contract, the agreed-upon sale price of the vehicle, plus any charges for taxes, title, license fees, service contracts, and vehicle protection products, less any down payment and/or net trade-in allowance. This is the amount that is subject to finance charges.

    Amount Due at Signing or Delivery, or Amortized Amounts

    The amount due at the dealership at the time the lease agreement is signed and the vehicle is delivered. This amount generally includes the first monthly payment, the capitalized cost reduction, the acquisition fee (if not capitalized), sales/use tax, refundable security deposit(s), registration/title fees, license fees, etc.

    Annual Percentage Rate* (APR)

    In a finance contract, the cost of your credit as a yearly rate.

    * The disclosed APR is an estimate based upon the credit rating assessment you provided and average rates for contracts purchased by the MFS office serving your area. Actual APR will vary and is agreed upon by you and your Mazda dealer. The estimate provided assumes financing through MFS and your participating Mazda dealer on approved credit. Not all customers will qualify.




  • Billing Address

    The mailing address to which you would like to have your monthly billing statement delivered to you. Typically, this is your home address, but can be any other address including a P.O. Box. You may update your billing address online by logging in and selecting My Information.


  • Capitalized Cost Reduction or Cap Cost Reduction

    In a lease contract, the amount of any net trade-in allowance, rebate, non-cash credit or cash paid that reduces the gross capitalized cost. This is sometimes referred to as a down payment.


    An individual who also signs a retail contract or lease agreement and, thereby, assumes equal responsibility for the repayment of the retail contract or lease agreement.

    Closed-End Lease

    A type of lease in which the lessee is responsible for any excess mileage and/or excess wear and use charges. This is also called a guaranteed trade-in, net lease, or walk-away lease. This is the only type of lease Mazda Financial Services uses.

    Contract Date

    The date the lease agreement or retail contract is signed.

    Contract Term

    Length of retail contract or lease agreement, expressed as monthly increments. The range is usually from 24 to 84 months in most states.


    A Certified Pre-Owned Mazda vehicle.

    Credit Date

    The date the online payment will be credited/posted to your account in the MFS system. There are two days from the submit date to the credit date.

    Credit Rating

    The self-assessed credit range provided by you to estimate the APR for a financing or rent charge factor for a lease agreement. It is distinct from your Credit Report, which is generated by third-party credit bureaus.


  • Depreciation

    The amount of a vehicle's projected decline in value through normal use during the lease term, calculated as the adjusted capitalized cost minus the residual value.

    Desired Term

    The preferred duration of a finance or lease contract, usually expressed in months (e.g., 24 months, 36 months).

    Disoposition Fee

    A fee the lessee pays at lease termination that covers the cost of reconditioning and remarketing that is necessary to dispose of or sell the off-lease vehicle.

    Down Payment

    The amount of cash or net trade-in allowance applied to reduce the cash sales price of a vehicle. Many Creditors require a down payment of 10 to 15 percent of the amount to be financed. However, the required down payment can be less, depending on your credit history, ability to repay and other criteria. A down payment helps lower your monthly payment as well as establish equity in your financed vehicle.


  • Early Termination

    When a lease is terminated before the scheduled maturity date and the vehicle is returned to the lessor. Early termination charges may be substantial.

    End of Term

    The end of the agreed upon lease term.

    Excess Mileage Charge

    Charges for additional miles that are driven beyond the set mileage allowance disclosed in the lease agreement. If this limit is exceeded, the lessee is charged for each mile driven exceeding the allowable mileage, as disclosed in the lease (e.g., $0.15 per mile). However, if at lease inception, you feel you will be driving more than is set forth in the lease, you can add the anticipated excess mileage (at $.10 per mile) to your lease to be paid as part of your monthly payment.

    Excessive Wear and Use - MFS

    MFS leases contain specific standards for excessive wear and use, based upon MFS' standards. Included are such items as missing parts, scratches, dents, mismatched/bald tires, cracked glass, ripped/torn/burned interior, and inoperable mechanical parts. At the end of the lease, if the lessee does not purchase the vehicle, the lessee must either repair the excessive wear and use or pay the lessor the estimated cost to repair. Under certain circumstances, Mazda Financial Services does not charge its lease customers for excess wear and use damage.


  • Finance Charge(s)

    Any fee representing the cost of credit, or the cost of borrowing. It is interest accrued on, and fees charged for, some forms of credit. It includes not only interest but other charges as well, such as financial transaction fees.

    First Monthly Payment

    MFS requires that lease payments be made at the beginning of each monthly period. Therefore, the first monthly lease payment is due at the time of lease signing.


  • Garaging Address (applicable for lease accounts only)

    The address where the vehicle is physically kept. A P.O. Box cannot be used as a garaging address. If you are moving and need to update your garaging address, you can do so online by selecting "My Information" while you are logged in to My Account. There may be tax implications for changes to your garaging address. Contact your local Department of Motor Vehicles (DMV) for additional information. For assistance in locating the DMV for your state, you may visit

    Gross Cap Cost or Gross Capitalized Cost

    The agreed upon value of the lease vehicle (including dealer mark-up), plus any items you pay for over the lease term such as taxes, service contracts, credit insurance and any prior credit or lease balance.


  • High Mileage Lease Option

    A lease option suited especially for those who spend a lot of time behind the wheel. This lease offers an annual mileage maximum higher than our standard lease programs and an opportunity for high mileage drivers to take advantage of the benefits of leasing. For anticipated mileage beyond 15,000 a year, the high mileage option allows the dealer to adjust the monthly payment to account for the additional mileage that will be on the vehicle at lease-end.


  • Insurance

    The primary insurance coverage which must be provided on a vehicle during the entire Mazda Financing or Mazda Lease term.


  • Lease

    A contract between a lessor and a lessee for a specified time period and a specific payment. The title of the car remains in the name of the lessor as owner unless and until the lessee exercises his/her purchase option.


    The customer who signs a lease with the lessor and pays for use of the vehicle.


    The Mazda dealer and, after assignment, the financial institution to which the lease is assigned. The party leasing the vehicle to the lessee, the actual owner of the vehicle and the lease (e.g., leasing company, dealer or financial institution).

    Low Miles

    The mileage calculated into a lease payment under MFS' Low Mileage Lease Program. The total allowable miles under MFS' Low Mileage Lease Program is calculated by dividing the number of months in the term by 12 and multiplying this amount by 12,000. For example, the total allowable miles under a MFS Low Mileage Lease with a 36 month terms is calculated as follows: 36 month term divided by 12 = 3 years; 3 years multiplied by 12,000 is 36,000. A charge is assessed for any mileage driven that exceeds this limit.


  • Maturity Date

    The date the contract is scheduled to end.

    Mileage Allowance

    The agreed upon number of miles that can be driven annually during the course of the lease term.

    Mileage Options

    The possible mileage choices the lessee can elect when leasing a Mazda vehicle through Mazda Financial Services.

    MSRP* (Manufacturer's Suggested Retail Price)

    The base retail price of the vehicle plus any factory installed options, often called the sticker or list price. Actual MSRP may vary. Final price is agreed upon between you and your Mazda dealer. MSRP excludes the delivery, processing, and handling fee, taxes, title, and license. Actual dealer price may vary. Does not include accessory options installed by dealer.


  • Parking/Citation Administration Fee

    A fee which is assessed to a lease account if a previously unpaid citation for the lease vehicle was paid by the lessor. Mazda Financial Services assesses an administration fee on lease accounts in addition to the amount of the ticket. Administration fees will appear on your monthly invoice as “Other Fee(s)”.

    Personal Property Tax

    A state or locality imposed percentage tax which is assessed to owners of certain personal property, such as: automobiles and/or other vehicles, durable goods (usually excluding household goods and personal effects), stocks, bonds, etc. Personal Property Tax is assessed based on the fair market value of the property. Contact your local Department of Motor Vehicles (DMV) for additional information. For assistance in locating the DMV for your state, you may visit

    Protection Products

    Optional vehicle protection plans designed to help protect your investment and provide peace of mind against unexpected issues. MFS' suite of voluntary protection products includes Vehicle Service Agreements, Prepaid Maintenance, Guaranteed Auto Protection, Tire & Wheel Protection, Key Replacement and Excess Wear & Use Protection. 

    Purchase Option

    An option in a lease that allows the lessee to purchase the vehicle during or at the end of the lease term for a price disclosed or described in the lease.


  • Recurring ACH Program

    Monthly payments can be arranged to be automatically debited from a checking, savings/draft account.

    Refundable Security Deposit

    An amount collected by the lessor at the beginning of the lease to ensure the lessee's compliance with the terms of the lease. The security deposit is generally refundable at lease end, provided there are no excess mileage, excessive wear or use charges, outstanding parking tickets or other unpaid amounts.

    Residual Value

    The projected value of the vehicle at lease end that is used in calculating the monthly payment.

    Retail Installment Sales Contract (Finance Contract)

    A contract for the sale of the vehicle between the seller and the buyer, in which the seller agrees to finance the sale under the terms set forth in the contract. The dealer is the seller and creditor on the contract, which is later assigned to a secondary finance source, such as MFS.


  • Sales Price

    The agreed-upon value of a financed vehicle, between the seller and purchaser.

    Sales Tax

    A state or locality imposed percentage tax which is assessed on certain goods and/or services at the point of purchase. Sales tax on automobile leases may be imposed at the beginning of the lease or as the payments become due, depending on the state or the locality.

    Scheduled Termination

    The scheduled date the contract term ends; also referenced as Maturity Date.

    Simple Interest

    Interest computed only on the outstanding principal balance, without compounding. (Compounding interest includes accrued interest in the calculation of interest charges.) Understanding Simple Interest.

    Single Pay Lease

    A lessee may opt to make one single up-front payment.

    Standard Miles

    The annual mileage MFS assumes a vehicle will be driven when calculating a lease payment. The total allowable standard mileage is calculated by dividing the number of months in the term by 12 and multiplying this amount by 15,000. For example, the total allowable miles on a standard lease with a 36 month term is calculated as follows: 36 month term divided by 12 = 3 years; 3 years multiplied by 15,000 = 45,000. A charge is assessed for any mileage driven that exceeds this limit.


  • Term

    The duration of the finance or lease contract, usually expressed in months (e.g., 24 months, 36 months).


    The point when the terms and conditions of the lease agreement have been fulfilled. Early termination is possible but penalties are usually incurred.


    The legal document used to identify the owner of a vehicle.

    Total Sale Price

    The total cost of your purchase, including the down payment.

    Trade-in Value

    The net value of a vehicle credited toward the purchase or lease of another vehicle.


  • Vehicle Turn-in Fee

    (Termination Fee) The amount due at lease-end, in addition to any over mileage charges, excessive wear and use fees, etc. This fee covers costs associated with returning the leased vehicle.