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Administrative Fees

The payment amount for a one-time commission, charged by the leasing company to the customer as a fee for services provided, for processing agreements, etc.

Car residual value

This is the value of an automobile at the end of the lease agreement, as agreed upon by the lessor and lessee. It is discussed in the contract and remains unchanged only if the vehicle was exploited according to the terms of the agreement with the leasing company.


This is the portion of losses stipulated in the contract, which the insurer does not provide compensation for in the case that an insurance event takes place. There is a conditional deductible and an unconditional deductible. A conditional deductible confirms the insurer’s right to be exempt from liability for damages in the case that this amount does not exceed the amount of the deductible, and also entails that the damage is fully refundable in the case that it exceeds the deductible amount. The unconditional deductible shows that the insurer's liability is determined by the amount of losses minus the deductible.

European interbank rates

The European Interbank Offered Rate, otherwise known as EURIBOR, is the average interest rate on interbank loans to banks (in euro). It is determined by the European Banking Federation, which represents the interests of credit institutions in European Union Member States and associated countries, including Iceland, Norway, Switzerland and the Financial Markets Association. Reuters calculates and publishes the rates daily at 11:00 am on the basis of data provided by dozens of first-class banks. The list of quotation banks is regularly reviewed to ensure compliance with the requirements for a high rating. The rate is calculated for different periods, ranging from 1 week to 12 months.

Financial leasing

This is an economic operation of an individual or legal entity transferring property that is purchased or manufactured by the lessor to the lessee under a financial leasing agreement, in addition to all the risks and rewards associated with the ownership and the right to use the leasing object.

Insurance accident

This is the event stipulated in the insurance contract or by law, which has occurred and has resulted in the insurer's obligation to pay the insurance amount (insurance indemnity) to the policyholder, the insured or another third party.

Insurance amount

This is the insurer's level of financial obligations with respect to financial compensation for damages caused by the insurance event to the policyholder (insured). According to the property insurance, the insurance amount shall not exceed the price of the leasing object. There are no limitations in terms of voluntary life insurance.

Insurance compensation

This is monetary remuneration, which is paid by the insurer within the insurance amount, according to the terms of a property insurance contract, and insurance liability when an insurance event occurs.

Insurance cost

This is the cost of the leasing object, which is established by the insurer through an assessment of the insurance object (the value should not be higher than the true value of the property on the date that the insurance contract is signed).

Insurance coverage

This is a measure of the policyholder's satisfaction about the insurable interest by the insurance company. It is expressed in terms of the insurer’s liabilities arising within the insurance relationships, and is based on the insurance contract or law.

Insurance event

This is the event that has occurred, which has features of an insurance event and can be recognised by the insurer as the insurance event under the terms of the contract.

Insurance premium

This is the amount that the policyholder pays to the insurer for liabilities for paying damages caused to the insured property, or for paying the insurance amount in the case of predefined events within the life of the insurance company (the policyholder).

Lease down payment

This is the part of the leasing costs that the lessee pays to the lessor in order to obtain the leasing object in use.

Leasing payments

This is a fee for the possession and use of the leasing object.

London interbank offered rate

The London Interbank Offered Rate, LIBOR, is the average interest rate on interbank loans to banks, which present money offers in different currencies and for different periods, ranging from 1 day to 12 months, on the London interbank market. Since 1985, thee rate has been recorded by an authorised agent of the British Bankers Association and Reuters every day at 11:00 am according to Western European time, based on data provided by 16 selected banks (Prime banks with ratings of at least AA). The four highest and four lowest values are excluded from the 16 received rates, and the average for the rest is determined for each period. They are published as LIBOR for the specific period and currency. It is available with a one-week delay. The LIBOR rate is calculated for the following currencies: Australian dollar, Danish krone, U.S. dollar, euro, Canadian dollar, New Zealand dollar, British pound sterling, Swedish krona, Swiss franc, and Japanese yen.

Net leasing

This is leasing, whereby all the costs associated with maintaining the leasing object are the responsibility of the lessee, and all such costs are included in the leasing payments.

Operating leasing

This is a form of leasing where the leasing company provides the lessee services for the maintenance and repair of the leasing object. Ownership, remuneration and risk remain within the domain of the leasing company. The duration of such a leasing agreement is usually shorter than the full amortization (depreciation) period and the buyback of the property is not expected. After the contract has expired, the object is returned to the lesser, who may re-lease it again to another client or else sell it. Operational leasing is convenient for high-tech car park usage, when the lessee does not bear the costs of implementing the amortized (depreciated) portion thereof.