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




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Fair market value

The amount that a willing buyer would pay to a willing seller to purchase certain property at a particular point in time.


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Fair-market-value purchase option

Your right to purchase a leased vehicle at scheduled termination in accordance with the terms specified in your lease agreement for a price determined by referring to a readily available guide to used-car values or another independent source.


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Federal Reserve Board

The US federal agency with rule-writing authority for the Truth in Lending Act, of which the Consumer Leasing Act is part; officially known as the Board of Governors of the Federal Reserve System. The Board also performs other functions related to U.S. monetary policy, financial system stability, bank supervision and regulation, and the nation's payments system.


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Federal Trade Commission

The US federal agency responsible for enforcing the Truth in Lending Act, of which the Consumer Leasing Act is part, among leasing companies, finance companies, lessors, and assignees not regulated by other federal agencies. The Federal Trade Commission also performs other functions related to its role of ensuring that the nation's markets function competitively; enforcing other statutes affecting consumer financial services; and enforcing the Federal Trade Commission Act, which prohibits unfair or deceptive acts or practices.


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Fees and taxes

(or official fees and taxes) The total amount you will pay for taxes, licenses, registration fees, title fees, and official (governmental) fees over the term of your lease. Because fees and taxes may change during the term of your lease, they may be stated as estimates.


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Fixed-price purchase option

Your right to purchase a leased vehicle at scheduled termination for a fixed price specified in your lease agreement.


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Full-maintenance lease

A lease in which the lessor or assignee assumes responsibility for all manufacturer-recommended maintenance and service on the vehicle. The lease may also cover additional mechanical repairs and servicing during the term of the lease. The cost of this service usually is included in the gross capitalized cost or is added to the base monthly payment.



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