Leasing Questions
Answered
Legal
Agreement
• Lease Company (Lessor)
• Customer (Lessee)
Specific Vehicle • Vin Number
Specific Amount
of Time
Specified
Conditions
Specified Cost
Customer Drives an Automobile
Making Relatively Low Payments
Auto Owned by Leasing Company
(or Bank)
Leased for a Specific Time Period
Returned at the End of the Lease
Option To Purchase Generally
Offered
Steady
Reduction
in a
Vehicle’s
Value
Based on
Vehicle
Age
Based on
Miles
Driven
Greatest
in the
First Year
Lessees Pay
for
Depreciation
Not the
Entire Value
of a Vehicle
 End
One Lease and Begin Another
 Same
Vehicle
 Cannot
Change Finance Terms of a Lease
 Predicted
Lease-End Value of Vehicle
 Important to the Calculation of Monthly
Payment
Lease Payment Basis
 Negotiated
Price – Residual Value
Excessive
Mileage
Penalty on a
Per-Mile
Basis
Excessive
Wear-andTear
Damages
Beyond
“Normal”
Terminating
a Lease
Before
Normal End
Date