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A fee charged for a past-due payment. This charge is usually either a percentage of the lease payment or a fixed dollar amount
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A payment received after the specified due date. In most cases, a payment made after any grace period triggers a late charge.
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A contract between a lessor and a lessee for the use of a vehicle or other property, subject to stated terms and limitations, for a specified period and at a specified payment.
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(adjusted lease balance) The unpaid portion of the adjusted capitalized cost of the lease. The lease balance is reduced as you make your monthly payments, usually calculated according to a standard method such as the Constant Yield (Actuarial) method. The lease balance is often a primary component of the early termination payoff amount.
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The number of payments in the lease agreement. Generally, the number of payments and the number of months in the lease term are the same. However, there are some leases in which the numbers may be different, such as a single-payment lease, which would disclose "1" as the number of payments and may disclose "24 months" as the lease term.
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A percentage used by some lessors or assignees to describe the rent charge portion of your monthly payment. However, no standard exists for calculating the lease rate. Any rates or factors used in lease calculations do not have to be disclosed under federal law. If a lease rate is given as a percentage in an advertisement or on any lease form, the ad or form must also state, "This percentage may not measure the overall cost of financing this lease." Some states may require disclosure of the lease rate calculated according to the state's definition of the lease rate.
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The period of time for which a lease agreement is written.
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State laws that provide remedies to consumers for vehicles that repeatedly fail to meet certain standards of quality and performance. Lemon laws vary by state and may not cover leased vehicles.
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The party to whom the vehicle is leased. In a consumer lease, the lessee is you, the consumer. The lessee is required to make payments and to meet other obligations specified in the lease agreement.
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A person or organization that regularly leases, offers to lease, or arranges for the lease of a vehicle. See Assignee and Broker.
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