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Keys to Vehicle Leasing

Sample Leasing Form - Page 1

Sample Leasing Form Page 1 1 2 3 4 5 6 6a 6b 7 8 9 10 11 12 13 14 15 16 17

1. Lessee(s): You are the lessee.

2. Amount Due at Lease Signing or Delivery: This is the amount you must pay up-front to take delivery of the vehicle. See 6 for an itemization.

3. Monthly payments - depreciation, collection of rent, taxes and other capitalized costs is included in your monthly fee. In detailing the calculation of the same.

4. Other Charges: These charges are in addition to your monthly payment. A disposition fee, if any, is paid at the end of the lease and covers the lessor's costs of selling the vehicle. These charges do not include amounts that may be due if you end the lease early or exceed wear or mileage limits.

5. Total of Payments: Refundable amounts such as a security deposit are not included. The total also does not include amounts that may be due if you end the lease early or exceed wear or mileage limits. In this example, 5 = (2 +3 +4 ) - (First monthly payment + security deposit).

6. Itemization of Amount Due at Lease Signing or Delivery: Totals of columns 6a and 6b should equal one another.

6a. Itemization of Amount Due at Lease Signing or Delivery: Totals of columns 6a and 6b should equal one another.

6b. Itemization of Amount Due at Lease Signing or Delivery: Totals of columns 6a and 6b should equal one another.

7. Your monthly payment: Shows how your monthly payment is calculated.

8. Gross capitalized cost: Like the puchase price when you buy a vehicle, the gross capitalized cost is negotiable. If you want an explanation of what this amount includes, ask for an itemization.

9. Capitalized cost reduction: Like the down payment when you buy a vehicle, this amount is subtracted from the gross capitalized cost.

10. Rent charge: This amount is like the interest or finance charge on a loan or credit agreement.

11. Lease Payments: The lease term may also be disclosed on this line. Generally, the number of payments and the number of months in the lease term are the same. However, there are some leases where the numbers may be different, such as a single payment lease that would disclose "1" as the number of payments and disclose "24 months" as the lease term.

12. Monthly sales/use tax: These are taxes added to your base monthly payment that are not included in the gross capitalized cost.

13. Total monthly payment: In addition to your monthly payment, you may have to pay personal property taxes, registration, and other items. Look for these amounts in your agreement.

14. Early Termination: Read your agreement carefully to understand how early termination charges will be calculated.

15. Excessive Wear: Make sure you understand what counts as excessive wear in your agreement.

16. Excessive Use: Try to have the mileage limits in the lease match your driving needs. It may be less expensive to increase the mileage limit at the beginning than to pay for extra miles at the end of the agreement.

17. Purchase Option at End of Lease Term: If you have a purchase option, a dollar amount or a reference to an independent pricing guide should be provided.

Last update: March 13, 2013

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