Glossary for Expat Car Leasing - Rental & Airport Transfer

Learn the meaning of common terms used for Expat Car Leasing, Long Term Car Rental & Airport Transfers

Expat Car LeaseCar RentalAirport Transfer

Learn the meaning of common terms used in Expat Car Leasing,

Moving to a new country can be an overwhelming experience. Add the stress of trying to understand complicated terms related to your mobility needs.

But don't worry - we got you covered! Our Glossary will help you navigate even the most difficult phrases you'll encounter no matter what transportation service you need.

Expat Auto Leasing Glossary

Expat Car Leasing & Financing involves many specific phrases that can seem complicated. Below you'll find an explanation of many common expressions used at car dealerships.

Capitalized Cost Reduction

This is another way of saying down payment. This is interest free money which goes towards the price of your car, and will reduce your monthly payments. The cash amount you put in to initiate the lease results in a reduction of the capitalized cost.

Closed-end lease

A lease that doesn’t require the consumer to buy the vehicle at the end of the lease, or to pay any difference between the residual value and market value. Closed-end lease is the most common type of lease.

Depreciation

This is the amount of value that a vehicle will lose during the lease period. The depreciation is the difference between the original price and how much it'll be worth after the lease is over.

Early Termination

When a customer decides that they want to end the agreement before it was originally arranged. The Leasing company is able to charge a fee which will cover themselves in this circumstance. It usually means that the vehicle needs to be returned and 50% of any outstanding payments have been completed.

Excess mileage charge

When you sign a leasing agreement, you'll decide on a mileage limit. If you later go over the mileage limit, you'll normally have the pay an excess mileage charge.

Excess wear and tear

Lease plans have requirements on the condition of a leased vehicle when it is returned. If the car is in damaged or in rough condition, there may be a charge.

Insurance

Leased vehicles usually have stringent coverage requirements and therefore may cost more to insure than your usual "owned" vehicle. However, in many countries, insurance is included in the monthly payments.

Lease term

This is the period of time in which you're able to use the vehicle, and the period of time that you will be paying on a monthly basis. The lease terms may vary from 12 months to 60 months depending on country. Generally speaking, the longer the lease term, the lower the monthly payments.

Manufacturer's Suggested Retail Price (MSRP)

The MSRP is the list price of the vehicle.

Maintenance

In many countries, maintenance is included as part of their monthly payments. This covers any servicing the vehicle requires, including: repairs, new parts, tires, batteries and exhausts.

Monthly Payments

This is the agreed amount of money that the customer has to pay to the leasing company on a monthly basis.These payments last until the end of the contract period, although they can be paid off early is the lessee decides that they want to.

Open-end lease

A lease that requires the consumer to pay the difference between the vehicle’s residual value and its actual value when the lease ends. This amount is called the deficiency. Conversely, if the car’s value at lease end exceeds the residual value, the consumer can purchase the car and collect the difference on resale

Purchase option

The opportunity for the customer to buy the car at the end of the lease. The price to buy the vehicle is stated in the lease contract and usually is equal to the residual value.

Residual value

The car’s wholesale value at the end of the lease as projected at the beginning of the lase. Higher residual values translate to lower monthly payments but increase the cost to buy the car at the end of the lease.

Termination fee (or disposal or disposition fee)

The amount customer have to pay at the end of a closed-end lease if they choose not to pay the residual value and buy the car. This fee can include administrative charges, any penalties, the dealer’s cost to prepare the car for resale.

Airport Transfer Service Glossary

Airport Transfer is one of our most popular and fastest growing services. After a long and exhausting flight, your personal chauffeur awaits you at the airport, carries your luggage, and drives you to your destination. Below you will find some common expressions.

Airport Transfer

Also known as hotel transfer, limousine service, or airport shuttle.
An airport transfer is a regularly scheduled transportation service that takes passengers from a designated airport to a hotel or other prearranged destination. The service may also provide a return service from a selected hotel or pick-up point to a designated airport.

Meet & greet services

The driver will wait for you at the airport (usually outside of customs or baggage claim) with a passenger name sign. The driver will then take your luggage and drive you to your destination.

Flight monitoring

The driver monitors the flight, in case arrival time changes

“No-show”

When passengers do not show up without prior cancellation - usually 24 hours before flight arrival - the full cost of service applies.

All-inclusive Service

Taxes, fees and gratuities are included in the rate for Airport transfer.

Car Rental Services Glossary

Since rental car terminology can be very confusing, hopefully the glossary below will shed some light on many common concepts encountered at the rental office.

Additional Drivers

Typically, only the person who signed the rental agreement is allowed to drive the rental car. Most often, the exception to the rule is spouses, and sometimes coworkers.

Additional Equipment

Additional equipment is sometimes available to include in the rental (at an additional fee). Examples are infant and child booster seats, GPS, or toll devices.

Additional Rental Day

If you return your rental car more than 29 minutes after scheduled drop-off (according to the reservation), you'll most likely be charged for another day of rental.

All Wheel Drive (AWD)

Rental car companies tend to lump AWD together with Four Wheel Drive (4WD), resulting a vehicle category that mainly includes SUVs and trucks. There are differences between AWDs and 4WDs, but in a nutshell: AWD is designed to handle bad weather, while 4WD is for conquering tough terrain. Most renters look for AWD/4WD vehicles if they expect to drive in snow, since off-roading is usually not allowed in rental contracts.

Child Seat

You can request a child seat with your booking. Keep in mind there is limited availability, so make sure you supply all relevant information as soon as possible. The likeliest location to secure a child seat is at the airport location.

Concession Recovery Fee (CRF)

Airports charge rental car companies for the privilege of doing business on site, and the rental companies pass this percentage-based fee on to the renter.

Damage Waiver (DW)

This optional cover waives your responsibility to the rental company for damage to the rental vehicle if you have a collision with another vehicle. You may already be covered by your personal car insurance or credit card benefits. (Typically synonymous with LDW, or Loss Damage Waiver.)

Debit Card

In most cases, the rental company will not accept a debit card but will require a credit card.

Deductible or Excess

Deductible means an amount of money that must be paid out of pocket before an insurer will pay further expenses

Driving Restrictions

Read your rental agreement carefully to see if there are any restrictions to where you are allowed to take the car. For example, often you're not permitted to drive the car into another country.

Drop fee

A drop fee is added when the car is dropped off at a location other than where it was picked up. In general, the longer the distance from the original pick-up location, the higher the drop fee.

Fuel Purchase Option (FPO)

If you opt for the FPO, you prepay for a full tank of discounted gas at the time you pick up the car. This is only a break-even option (at best) if you can return the car with a completely empty tank.

Loss Damage Waiver (LDW)

This optional coverage waives your responsibility to the rental company for damage to the rental vehicle if someone steals or vandalizes the car while in your possession, if a limb falls on it, or if it befalls some other non-collision damage while the car is in your possession. (Often synonymous with CDW, or Collision Damage Waiver.)

One-Way Rental

When the rental car is returned to a location different from the pick-up location, it is a one-way rental. Note that higher rates or extra fees (see: Drop Fee) usually apply for one-way rentals.

Personal Accident Insurance (PAI)

A.K.A. Personal Injury Protection (PIP). In the event of an accident, this optional supplemental insurance covers medical costs, ambulance and death benefits for the renter and passengers traveling in the rental vehicle

Personal Effects Coverage (PEC)

A.K.A. Personal Effects Protection (PEP), this optional coverage provides protection if there is loss or damage to your belongings in the rental car. If you have a homeowner's or renter's insurance policy, it likely already covers your belongings.

Roadside Assistance Protection (RAP)

This optional coverage provides roadside assistance in case you lock yourself out of the car, lose your key, have a flat tire or a dead battery, or need a tow. If you own a car, you may already have access to roadside assistance through your personal auto insurance, or credit card benefits.

Super Collision Damage Waiver (SCDW)

This type of collision cover is common in Europe and other parts of the world. Think of the SCDW as collision insurance plus coverage of the "excess," or deductible. Rental car companies in Europe and some other parts of the world protect themselves by putting a preemptive hold on your credit card to cover this excess.

Supplemental Liability Protection (SLP)

A.K.A. Additional Liabiltiy Insurance (ALI), Liability Insurance Supplement (LIS), or Supplemental Liability Protection (SLP), this insurance provides coverage in the event of an accident that causes bodily injury or property damage to someone other than the renter and passengers in the rented vehicle.

Underage Surcharge

A.K.A. a "young driver fee," this surcharge is levied on drivers under age 25. Major rental car companies will rent to licensed drivers who are at least 21 years old (and in some states as young as 18) as long as they meet other (and often fairly strict) rental requirements.

International Driver's License (IDL)

If the home country driver's license is in a language other than English and the letters are not English (i.e. alphabet is not an extended Latin-based alphabet like German or Spanish but is Russian, Japanese, Arabic, etc.) an International Driver's License is required.