Top: Business: Retail Trade: Automotive: Leasing: Terminology: B


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Base monthly payment

The portion of the monthly payment that covers depreciation, any amortized amounts, and rent charges; calculated by adding the amount of depreciation, any other amortized amounts, and rent charges and dividing the total by the number of months in the lease. Monthly sales/use taxes and other monthly fees are added to this base monthly payment to determine the total monthly payment.


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Broker

(or Arranger) An entity that arranges for the sale or lease of vehicles through another party.


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Business lease

A lease of personal property to (1) an individual to be used primarily for business, commercial, or agricultural purposes or (2) an organization, such as a partnership, corporation, or government agency. The Consumer Leasing Act and Regulation M do not apply to business leases.



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