The definitions in this glossary are meant to give you, the consumer,
a general understanding of terms used in vehicle leasing. They are not
legal definitions, but they generally assume compliance with applicable
legal requirements. The terms may be used differently in different situations,
and their exact definition under federal law may differ from that under
state law. Please refer to Federal
Reserve Board Regulation M and the Consumer Leasing Act for more information
about federal requirements for lease disclosures and terms. This glossary
does not cover credit transactions, even those that have similarities
to leasing.
Some of the definitions refer to monthly payments. If your lease has
a different payment period (for example, biweekly or yearly), you may
substitute that period in the definitions. Also, the definitions generally
are applicable to both single-payment and multiple-payment leases.
- Acquisition fee
- A charge included in most lease transactions that either is paid up
front or is included in the gross capitalized cost; may be called a
bank fee, an administrative fee, or an assignment fee. This fee usually
covers a variety of administrative or insurance costs. These may include
the costs of obtaining a credit report, verifying insurance coverage,
checking the accuracy and completeness of the lease documentation, entering
the lease in data processing and accounting systems, and purchasing
insurance for or reserving funds for residual-value losses, gap-coverage
losses, and other lease losses. Without an acquisition fee, lessors
have to charge higher rental charges.
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- Actuarial method
- See Constant Yield method.
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- Additional insured
- A party that is covered by another party's insurance policy. The lessor
typically requires you to name the lessor or assignee as an additional
insured under your vehicle insurance policy.
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- Adjusted capitalized cost (adjusted cap cost)
- The amount capitalized at the beginning of the lease, equal to the
gross capitalized cost minus the capitalized cost reduction. This amount
is sometimes referred to as the net cap cost.
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- Ad valorem tax
- See Personal property tax.
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- Amortized amounts
- Amounts--such as taxes, fees, charges for service contracts, payments
for insurance, and any prior credit or lease balance--that are included
in the gross capitalized cost and are paid as part of the base monthly
payment.
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- Amount due at lease signing or delivery
- The total of any capitalized cost reduction, monthly payments paid
at signing, security deposit, title and registration fees, and other
amounts due before you take delivery of the vehicle.
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- APR (annual percentage rate)
- The annualized cost of credit expressed as a percentage; used in finance
agreements. An annual percentage rate, or an equivalent rate, is not
used in leasing agreements.
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- Arranger
- See Broker.
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- Assignee
- A third party that buys a lease agreement from a lessor. You become
obligated to the assignee, and the assignee generally assumes the responsibilities
of the lessor, although some obligations may remain with the lessor.
For purposes of Regulation M, an assignee may be a lessor when the assignee
has substantial involvement in the lease.
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- Assignment
- The sale of a lease agreement and transfer of the ownership rights
for the leased vehicle from the lessor to an assignee. Many leases are
assigned at the time the lease is signed.
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- Assignor
- A lessor that sells the lease agreement and transfers the ownership
rights for the leased vehicle to an assignee.
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- Base monthly payment
- The portion of the monthly payment that covers depreciation, any amortized
amounts, and rent charges; calculated by adding the amount of depreciation,
any other amortized amounts, and rent charges and dividing the total
by the number of months in the lease. Monthly sales/use taxes and other
monthly fees are added to this base monthly payment to determine the
total monthly payment.
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- Broker (or Arranger)
- An entity that arranges for the sale or lease of vehicles through
another party.
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- Business lease
- A lease of personal property to (1) an individual to be used primarily
for business, commercial, or agricultural purposes or (2) an organization,
such as a partnership, corporation, or government agency. The Consumer
Leasing Act and Regulation M do not apply to business leases.
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- Capitalized cost
- Shortened term for either gross capitalized cost or adjusted capitalized
cost. Disclosure of both types of costs is required under federal law.
Some states require that the term "capitalized cost" be used
in state lease disclosures. See Gross capitalized
cost and Adjusted capitalized cost.
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- Capitalized cost reduction (cap
cost reduction)
- The sum of any down payment, net trade-in allowance, and rebate used
to reduce the gross capitalized cost. The cap cost reduction is subtracted
from the gross cap cost to get the adjusted cap cost.
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- Captive finance company
- A finance company related to a particular automobile manufacturer
or distributor.
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- Closed-end lease (or Walk-away lease)
- A lease in which you are not responsible for the difference if the
actual value of the vehicle at the scheduled end of the lease is less
than the residual value (though you may be responsible for excessive
wear and excess mileage charges and for other lease requirements). Distinguish
from Open-end lease.
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- Consumer lease
- A lease of personal property to an individual to be used primarily
for personal, family, or household purposes for a period of more than
4 months and with a total contractual obligation of no more than $25,000.
A lease meeting all these criteria is covered by the Consumer Leasing
Act and Federal Reserve Board Regulation M. If any one of these criteria
is not met, for example, if the leased property is used primarily for
business purposes or if the total contractual obligation exceeds $25,000,
the Consumer Leasing Act and Regulation M do not apply. See Total
contractual obligation.
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- Consumer Leasing Act
- A 1976 amendment to the federal Truth in Lending Act that requires
disclosure of the cost and terms of consumer leases and also places
substantive restrictions on consumer leases. See Consumer
lease.
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- Constant Yield method (or Actuarial method)
- The method of earning rent charges whereby the rent charge each month
is proportional to the remaining lease balance. Under this method, the
lessor or assignee earns rent charges at an equal rate over the lease
term (this method is the way the lender earns interest in most first
mortgages).
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- Consummation
- Generally, the time at which you and the lessor sign the lease agreement.
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- Dealer documentation fee
- See Documentation fee.
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- Dealer preparation fee
- A fee charged by some dealers to cover the expenses of preparing a
vehicle for lease. The dealer may be reimbursed by the manufacturer
for this expense.
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- Default
- Your failure to meet one or more conditions of your lease agreement.
Default may result in early termination of the lease.
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- Depreciation and any amortized amounts
- Total of (1) amount charged to cover the vehicle's projected decline
in value through normal use during the lease term and (2) other items
that are paid for over the lease term; calculated as the difference
between the adjusted capitalized cost and the vehicle's residual value.
This amount is a major part of your base monthly payment.
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- Disclosures
- Information on the financial terms and other terms and conditions
of a lease, including information required by federal regulation (Regulation
M) and by state laws. Required disclosures must be made in writing before
the lease is consummated. Advertisements that include key lease terms
(the amount of any payment or a statement of payments due before consummation
or delivery) must also include certain disclosures. Under Regulation
M, certain disclosures must be grouped together and segregated from
other information (see Segregated disclosures).
Other required disclosures must appear elsewhere in the lease documents
(see Nonsegregated disclosures).
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- Disposition fee (disposal fee)
- A fee often charged by a lessor or assignee to defray the cost of
preparing and selling the vehicle at the end of the lease if you do
not purchase the vehicle but instead return it to the lessor or assignee.
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- Documentation fee
- A fee charged by some dealerships (who may call it a dealer documentation
fee) or other lessors to cover the cost of preparing lease documents.
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- Down payment
- An initial cash payment in a lease that reduces the capitalized cost
or is applied to other amounts due at lease signing. See Capitalized
cost reduction.
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- Early termination
- Ending of the lease before the scheduled termination date for any
reason, voluntary or involuntary (for example, you return the vehicle
early or default on the lease, or the vehicle is stolen or totaled).
In most cases of early termination, you must pay an early termination
charge.
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- Early termination charge
- The amount you owe if your lease ends before its scheduled termination
date, calculated as described in your lease agreement. The earlier your
lease is terminated, the greater this charge is likely to be. The charge
is generally the difference between the early termination payoff and
the amount credited to you for the vehicle. Suppose, for example, that
your early termination payoff amount is $16,000 and the amount credited
for the vehicle is $14,000. The early termination charge would be $16,000
minus $14,000, or $2,000.
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- Early termination payoff (early termination
balance or gross payoff)
- The total amount you owe if your lease is terminated before the scheduled
end of the term, before the value credited to you for the vehicle is
subtracted. The early termination payoff is calculated as described
in your lease agreement. It may include the unpaid lease balance and
other charges.
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- Equal Credit Opportunity Act
- A federal law that prohibits discrimination in credit transactions
on the basis of race, color, religion, national origin, sex, marital
status, age, source of income, or the exercise of any right under the
Consumer Credit Protection Act.
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- Equity
- In an installment sale or loan, the positive difference between the
trade-in or market value of your vehicle and the loan payoff amount.
When the loan is paid off, the equity is the market value of the vehicle.
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- Excess mileage charge
- A charge by the lessor or assignee for miles driven in excess of the
maximum specified in the lease agreement. The excess mileage charge
usually between $0.10 and $0.25 per mile. Suppose, for example, that
your lease specifies a maximum of 36,000 miles and a charge of $0.15
per mile over the maximum. If you drive 37,000 miles, the excess mileage
charge will be $0.15 x 1,000, or $150. Open-end leases typically do
not include an excess mileage charge.
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- Excessive wear-and-tear charge
- Amount charged by a lessor or assignee to cover wear and tear on a
leased vehicle beyond what is considered normal. The charge may cover
both interior and exterior damage, such as upholstery stains, body dents
and scrapes, and tire wear beyond the limits stated in the lease agreement.
Open-end leases typically do not include an excessive wear and use charge.
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- Excessive wear-and-tear coverage
- A plan you may purchase that covers some or all of the charges for
excessive wear and tear defined in the lease agreement. The coverage
of these plans varies in the amounts and types of charges covered. Most
plans deny coverage if the lease is terminated early or if you are in
default. Generally, these plans do not cover excess mileage.
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- Excessive wear-and-use charge
- Sum of the excess mileage charge and the excessive wear-and-tear charge.
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- Extended warranty
- See Service contract.
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- Fair market value
- The amount that a willing buyer would pay to a willing seller to purchase
certain property at a particular point in time.
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- Fair-market-value purchase option
- Your right to purchase a leased vehicle at scheduled termination in
accordance with the terms specified in your lease agreement for a price
determined by referring to a readily available guide to used-car values
or another independent source.
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- Federal Reserve Board
- The federal agency with rule-writing authority for the Truth in Lending
Act, of which the Consumer Leasing Act is part; officially known as
the Board of Governors of the Federal Reserve System. The Board also
performs other functions related to U.S. monetary policy, financial
system stability, bank supervision and regulation, and the nation's
payments system.
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- Federal Trade Commission
- The federal agency responsible for enforcing the Truth in Lending
Act, of which the Consumer Leasing Act is part, among leasing companies,
finance companies, lessors, and assignees not regulated by other federal
agencies. The Federal Trade Commission also performs other functions
related to its role of ensuring that the nation's markets function competitively;
enforcing other statutes affecting consumer financial services; and
enforcing the Federal Trade Commission Act, which prohibits unfair or
deceptive acts or practices.
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- Fees and taxes (or official fees and taxes)
- The total amount you will pay for taxes, licenses, registration fees,
title fees, and official (governmental) fees over the term of your lease.
Because fees and taxes may change during the term of your lease, they
may be stated as estimates.
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- Fixed-price purchase option
- Your right to purchase a leased vehicle at scheduled termination for
a fixed price specified in your lease agreement.
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- Full-maintenance lease
- A lease in which the lessor or assignee assumes responsibility for
all manufacturer-recommended maintenance and service on the vehicle.
The lease may also cover additional mechanical repairs and servicing
during the term of the lease. The cost of this service usually is included
in the gross capitalized cost or is added to the base monthly payment.
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- Gap amount
- In the event a leased vehicle is stolen or totaled, the difference
between the early termination payoff amount, not including any past-due
amounts, and the amount for which the vehicle is insured before the
insurance deductible and any other policy deductions are subtracted.
The definition of gap amount may vary in different states or in different
lease agreements.
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- Gap coverage (guaranteed auto protection, or GAP)
- A plan that provides you financial protection in case your leased
vehicle is stolen or totaled in an accident. Some plans deny gap coverage
if you are in default at the time of the loss. There are two types of
gap coverage. One is a waiver by the lessor or assignee of the gap amount
if the vehicle is stolen or totaled. The other is a contract by a third
party to cover the gap amount. Under either type, you may remain responsible
for the insurance deductible, for other amounts deducted from the insured
amount of the vehicle by your insurance company, and for any past-due
or other amounts you owe under the lease. You may also be responsible
for the monthly payments until the lessor receives the insurance proceeds.
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- Gross capitalized cost (gross cap cost)
- The agreed-upon value of the vehicle at the time you lease it, which
generally may be negotiated, plus any items you agree to pay for over
the lease term (amortized amounts), such as taxes, fees, service contracts,
insurance, and any prior credit or lease balance.
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- Incentives
- Amounts rebated or credited, or special programs offered to encourage
the leasing of certain vehicles.
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- Independent leasing company
- A leasing company that offers leases directly to consumers and businesses
and is generally not affiliated with a particular automobile manufacturer.
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- Insurance
- A contract in which one party agrees to pay for another party's financial
loss resulting from a specified event (for example, a collision, theft,
or storm damage). Lease agreements generally require that you maintain
vehicle collision and comprehensive insurance as well as liability insurance
for bodily injury and property damage.
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- Insurance verification
- The process of obtaining verbal or written confirmation of required
coverage from your insurance agent or company.
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- Late charge
- A fee charged for a past-due payment. This charge is usually either
a percentage of the lease payment or a fixed dollar amount.
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- Late payment
- A payment received after the specified due date. In most cases, a
payment made after any grace period triggers a late charge.
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- Lease
- A contract between a lessor and a lessee for the use of a vehicle
or other property, subject to stated terms and limitations, for a specified
period and at a specified payment.
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- Lease balance (adjusted lease balance)
- The unpaid portion of the adjusted capitalized cost of the lease.
The lease balance is reduced as you make your monthly payments, usually
calculated according to a standard method such as the Constant Yield
(Actuarial) method. The lease balance is often a primary component of
the early termination payoff amount.
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- Lease charge
- See Rent or rent charge.
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- Lease extension
- Continuation of a lease agreement beyond the original term, often
1 month at a time. There may be a charge for extending the lease. If
the extension continues beyond 6 months, new lease disclosures must
be provided.
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- Lease factor
- See Money factor.
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- Lease payments
- The number of payments in the lease agreement. Generally, the number
of payments and the number of months in the lease term are the same.
However, there are some leases in which the numbers may be different,
such as a single-payment lease, which would disclose "1" as
the number of payments and may disclose "24 months" as the
lease term.
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- Lease rate
- A percentage used by some lessors or assignees to describe the rent
charge portion of your monthly payment. However, no federal standard
exists for calculating the lease rate. Any rates or factors used in
lease calculations do not have to be disclosed under federal law. If
a lease rate is given as a percentage in an advertisement or on any
lease form, the ad or form must also state, "This percentage may
not measure the overall cost of financing this lease." Some states
may require disclosure of the lease rate calculated according to the
state's definition of the lease rate.
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- Lease term
- The period of time for which a lease agreement is written.
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- Lemon laws
- State laws that provide remedies to consumers for vehicles that repeatedly
fail to meet certain standards of quality and performance. Lemon laws
vary by state and may not cover leased vehicles.
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- Lessee
- The party to whom the vehicle is leased. In a consumer lease, the
lessee is you, the consumer. The lessee is required to make payments
and to meet other obligations specified in the lease agreement.
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- Lessor
- A person or organization that regularly leases, offers to lease, or
arranges for the lease of a vehicle. See Assignee
and Broker.
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- Maintenance
- Care for the vehicle required by the lease agreement. Maintenance
may include manufacturer-recommended servicing and any repairs needed
to keep the vehicle in good operating condition.
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- Maintenance contract
- A contract that you may purchase to cover some or all of the vehicle
maintenance and servicing. Distinguish from Service
contract.
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- Maintenance lease
- A lease agreement in which some or all of the vehicle maintenance
and servicing is the responsibility of the lessor or assignee.
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- Mechanical breakdown coverage
- See Service contract.
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- Mileage allowance (or mileage limitation)
- The fixed mileage limit for the lease term. If you exceed this limit,
you may have to pay an excess mileage charge.
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- Model lease forms
- Sample disclosure forms developed by the Federal Reserve Board. You
should receive a similar form before becoming obligated on the lease.
View the sample leasing forms with explanations of
the disclosures.
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- Money factor (or Lease factor)
- A number, often given as a decimal, used by some lessors or assignees
to determine the rent charge portion of your monthly payment. This number
is not a lease rate and cannot be converted to a lease rate by moving
the decimal point.
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- Monthly payment
- This term may refer to one of two required federal disclosures. See
Base monthly payment and Total
monthly payment.
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- Monthly sales/use taxes
- The state and local taxes that you must pay monthly when you lease
a vehicle. These payments, if any, are added to your base monthly payment
and paid as part of your total monthly payment.
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- MSRP
- Manufacturer's suggested retail price, sometimes called the sticker
price.
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- Net capitalized cost
- See Adjusted capitalized cost.
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- Nonsegregated disclosures
- Disclosures required by Federal Reserve Board Regulation M that may
be presented in any order and may appear anywhere in the lease documents
except with the segregated disclosures. Page
2 of the sample leasing form shows these disclosures. See also
Segregated disclosures.
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- Open-end lease
- A lease agreement in which the amount you owe at the end of the lease
term is based on the difference between the residual value of the leased
property and its realized value. Your lease agreement may provide for
a refund of any excess if the realized value is greater than the residual
value. In an open-end consumer lease, assuming that you have met the
mileage and wear standards, the residual value is considered unreasonable
if it exceeds the realized value by more than 3 times the base monthly
payment (sometimes called the "three-payment rule"). If you
believe the amount owed at the end of the lease term is unreasonable
and refuse to pay, the lessor or assignee may attempt to prove that
the residual value was reasonable when it was set at the beginning of
the lease. However, if you cannot reach a settlement with the lessor
or assignee, you cannot be forced to pay the excess amount unless the
lessor or assignee brings a successful court action and pays your reasonable
attorney's fees. Distinguish from Closed-end
lease.
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- Option to purchase
- See Purchase option.
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- Payoff
- See Early termination payoff.
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- Personal property tax (or Ad valorem tax)
- A tax on personal property. State laws govern whether personal property
taxes apply to a leased vehicle; your lease agreement governs whether
you or the lessor or assignee will pay these taxes.
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- Prior credit balance (negative equity or negative trade-in balance)
- The portion of the gross capitalized cost representing the amount
due under a previous credit contract after the value of the vehicle
traded in on the lease has been credited.
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- Prior lease balance
- The portion of the gross capitalized cost representing the balance
due under a previous lease agreement after the value of the previously
leased vehicle has been credited.
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- Purchase option
- Your right to buy the vehicle you have leased, before or at the end
of the lease term, according to terms specified in the lease agreement.
Your lease agreement may or may not include a purchase option.
-
- Purchase-option fee
- An amount, in addition to the purchase price, you may have to pay
to exercise any purchase option in your lease agreement.
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- Realized value
- (1) The amount received by the lessor or assignee for the leased vehicle
at disposition, (2) the highest offer for the leased vehicle at disposition,
or (3) the fair market value of the leased vehicle at termination. The
realized value may be either the wholesale or the retail value specified
in the lease agreement.
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- Reasonableness standard
- The requirement of the Consumer Leasing Act that charges for delinquency,
default, or early termination be reasonable in light of the lessor's
or assignee's (1) anticipated or actual harm caused by such delinquency,
default, or early termination, (2) difficulties in proving loss, and
(3) inconvenience in obtaining a remedy.
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- Rebate
- An amount that may be offered by a manufacturer, dealer, lessor, or
assignee that may be paid to you separately or credited to your lease
agreement.
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- Reconditioning
- The process of preparing a vehicle for resale or re-lease if you return
it.
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- Reconditioning reserve
- An amount you may pay at the beginning of the lease that may be used
by the lessor or assignee to offset any amounts you may owe at the end
of the lease term for excessive wear and use and excess mileage. Any
remaining amount may be refunded to you.
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- Registration fee
- A fee charged by a state motor vehicle department to register a vehicle
and authorize its use on the public roadways.
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- Regulation M
- The regulation issued by the Federal Reserve that implements the Consumer
Leasing Act.
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- Rent or rent charge
- The portion of your base monthly payment that is not depreciation
or any amortized amounts. This charge is similar to interest on a loan.
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- Residual value
- The end-of-term value of the vehicle established at the beginning
of the lease and used in calculating your base monthly payment. The
residual value is deducted from the adjusted capitalized cost to determine
the depreciation and any amortized amounts. It is an estimate that may
be determined, in part, by using residual value guidebooks. The residual
value may be higher or lower than the realized value at the scheduled
end of the lease.
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- Residual value guidebooks
- Publications used, in part, by some lessors and assignees to establish
vehicle residual values. Different guidebooks are more popular in different
regions of the United States and with different lessors and assignees.
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- Sales/use taxes
- Taxes assessed on leased and purchased vehicles. States differ in
which amounts are taxed and when the taxes are assessed. In a lease,
sales/use taxes may be assessed on (1) the base monthly payment, (2)
any capitalized cost reduction, and (3) in a few states, the adjusted
capitalized cost. In most states, the sales/use tax on the base monthly
payment is paid monthly; in some states, however, the tax is due at
lease inception. Sales/use taxes on the capitalized cost reduction and
the adjusted capitalized cost are usually due at lease inception. If
you exercise any purchase option, separate taxes may apply.
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- Security deposit
- An amount you may be required to pay, usually at the beginning of
the lease, that may be used by the lessor or assignee in the event of
default or at the end of the lease to offset any amounts you owe under
the lease agreement. Any remaining amount may be refunded to you.
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- Security interest
- If stated in your lease agreement, a lessor's or assignee's legal
right to your property (such as stocks or bonds) that secures payment
of your obligation under the lease agreement.
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- Segregated disclosures
- Disclosures required by Federal Reserve Board Regulation M that must
be grouped together and separated from other information in the lease
documents. The first page of the sample
leasing form shows the disclosures that must be segregated. See
also Nonsegregated disclosures.
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- Service contract (or Mechanical breakdown coverage
or Extended warranty)
- A contract you may purchase to cover such expenses as the repair or
replacement of vehicle components and, in some cases, related services
such as towing or replacement rental cars. In most cases, service contracts
do not cover routine maintenance. Distinguish from Maintenance
contract.
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- Single-payment lease
- A lease that requires a single payment made in advance rather than
periodic payments made over the term of the lease. The single, lump-sum
payment should be less than the total amount you would pay were you
to make periodic payments over the term of the lease.
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- Standards for wear and use
- Statements in the lease agreement defining what the lessor or assignee
means by normal wear and use and setting the requirements for the vehicle's
condition at the end of the lease. Standards may address such items
as the minimum amount of tread on the tires at the end of the lease
or the type of dents or scratches that are acceptable. These standards
must be reasonable.
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- Sublease
- Oral or written contractual transfer of your leased vehicle to another
person. Such a transfer is usually prohibited without the lessor's or
assignee's approval.
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- Subvention
- A program or plan in which certain items are subsidized by the manufacturer,
the finance company, the lessor, or the assignee.
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- Termination fee
- See Disposition fee (disposal fee).
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- Three-payment rule
- See Open-end lease.
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- Time value of money
- The value derived from the use of money over time as a result of investment
and reinvestment. This term may refer to either present-value or future-value
calculations. The present value is the value today of an amount that
would exist in the future, given a stated investment rate called the
discount rate. For example, with a 10% annual discount rate,
the present value today of $110 one year from now is $100. Future value
is the value in the future of a known amount today, given a stated investment
rate. For example, with a 10% annual investment rate, the future value
in one year of $100 today is $110. In either case, the interest rate
used reflects the lost opportunities for return from alternative investments.
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- Title
- Legal document that identifies the owner of the vehicle. The lessor
or assignee, not you, holds title to the leased vehicle.
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- Total contractual obligation
- The sum of the capitalized cost reduction, the total of base monthly
payments, and other charges due under the lease agreement. The total
contractual obligation excludes any security deposit as well as sales
taxes and any other fees and taxes paid to a third party. If the total
contractual obligation exceeds $25,000, the Consumer Leasing Act does
not apply.
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- Total monthly payment
- The base monthly payment plus monthly sales or use taxes and any other
monthly charges.
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- Total of payments
- The sum of the periodic payments, the end-of-term disposition fee,
any other charges, and all amounts due at lease signing or delivery,
minus refundable amounts such as a security deposit and any monthly
payments included in the amount due at lease signing or delivery.
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- Trade-in
- The net value of your vehicle credited toward the purchase or lease
of another vehicle. If you own the vehicle being traded in, you sell
it to the dealer or lessor. If you are leasing the vehicle being traded
in, you are turning in the vehicle (either at the scheduled end of the
lease or upon early termination) to the dealer or lessor who has agreed
to pay any remaining balance on your agreement. The amount credited
may be positive or negative, depending on the agreed-upon value of the
traded-in vehicle and any remaining balance on your agreement.
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- Use tax
- See Monthly sales/use tax.
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- Used-car guidebooks
- Publications that report current wholesale and (or) retail prices
of vehicles. Wholesale values generally are determined from such factors
as auto auction prices, other wholesale transactions, and regional demand.
Prices are listed according to year, make, model, options, mileage,
and condition of the vehicle. Retail prices are generally determined
by such factors as dealership retail sales prices, other retail transactions,
and regional demand.
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- Used-vehicle leasing
- Leasing of previously driven (owned or leased) vehicles.
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- Walk-away lease
- See Closed-end lease.
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- Warranty
- A guarantee that the vehicle will function and perform as specified.
A warranty usually covers specified mechanical problems during a specified
period of time or number of miles.
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