Amount Due at Lease Signing
Definition
- When leasing a vehicle there are generally costs associated with the transaction and payment is due before the customer can take possession of the vehicle. Such costs can include a security deposit, title fee, capitalized cost reduction, monthly payments paid at signing, and registration fees.
Synonyms
down payment, leasing
Related Terms and Acronyms
- Contract — Definition,
- An agreement between two or more parties that can be enforced by law.
- Lease (lse) — Abbreviation,
- A written agreement in which the property owner allows a tenant to use property in exchange for rent, and for a specified period. Or, a written agreement in which a car dealer allows a consumer to use a vehicle in exchange for payments for a specified period.
- Security Deposit (sec, sec dep) — Abbreviation,
- In automobile leases, sometimes called reconditioning reserve. An amount, often the same as one month's payment, the dealer holds to be sure that the car will be returned in good condition. It is to be returned, less fees and damage charges, at the end of the lease.
- Walk-away Lease — Definition,
- The most common type of car lease, also known as a closed-end lease. The lessee may return the car at the end of the lease term, pay any end-of-lease costs, such as the disposition fee, and the lease agreement is over. In a closed-end lease, the lender assumes the risk of predicting the value of the vehicle (its residual value) at the end of the lease's term. Closed-end lease payments are somewhat higher than open-end lease payments.
