Car Lease
A Car Lease falls under the Federal Consumer Leasing Act, and consumers have a right to detailed information about the costs and terms of their car lease. The most common type of car lease is a “closed-end-lease”, where you simply return the vehicle at the end of the lease period, pay any end-of-lease costs, and stroll away.
At the beginning of the lease you may have to pay your first monthly payment, a refundable security deposit or your last monthly payment, other fees for licenses, registration and title, a capitalized cost reduction (like a down payment), an acquisition fee (also called a processing or assignment fee), freight or destination charges and state or local taxes.
During the car lease, you will have to pay your monthly payment, any additional taxes not included in the payment such as sales, use, and personal property taxes, insurance premiums, ongoing maintenance costs, and any fees for late payment. You’ll have to pay for any and all emissions and safety inspections, and of course any tickets.
At the end of the term, if you don’t buy the car, you may be responsible for excess mileage charges and “excessive wear”. Your car lease contract will tell you what is considered excessive wear, how many miles you are permitted to drive before being charged for extra miles, and how much the extra-mile charge will be.
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