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| Home > Auto Leasing Buying Guide > Selecting a Car Lease > Auto Lease Terms Defined |
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March 13, 2010
Auto Lease Terms Defined
View our select resources to learn the lanquage associated with car leasing, including: capitalized cost reduction, depreciation, down payment, early termination fee, excess mileage and more. |
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| Auto Lease Glossary |
A detailed auto lease glossary covering car lease terms such as amount due at lease signing, balloon payment loan, Blue Book, consumer leasing act, dealer sticker price, excess wear charge, holdback, mileage charge and more.
A defintion of an open-end lease provided by the resource: "Sometimes called a finance lease. It usually offers lower payments, but carries a risk for the consumer. Under an open-end lease, the lessee must pay any difference between the residual value of the car as stated in the lease and the fair market value of the car, if lower, at the end of the lease. The lessor pays for the appraisal that sets the value. If the consumer doesn't agree with it, the consumer may pay for a binding, independent appraisal by someone agreed to by both parties. Because the lessee is taking on the risk of having to come up with this extra payment, the payments are lower than for a closed-end lease." |
| Source: Auto Lease Assumption |
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