![]() If a lease does not disclose an additional early-termination charge, the lessor cannot charge more than the actuarial lease balance (other than any amounts you owe).īe sure to ask for these charges when shopping for a lease. The maximum amount the lessor can charge you for terminating early includes the actuarial lease balance (how much you should pay for the rest of the lease, calculated using a traditional actuarial method) plus this "additional" charge. You could be charged a lot of money!Īdditional early-termination charge: A lease must disclose this charge so you know how much you have to pay for ending a lease early. Open-ended leases: Beware of leases that make you pay the difference between the estimated vehicle value when you signed the lease and the "realized" or real value when the car is returned. Be sure to compare the annual mileage on which the residual value is based. The adjusted capitalized cost and the residual value determine the depreciation portion of your monthly payments. This amount is projected by the dealer or lessor. ![]() ![]() The adjusted capitalized cost is much like the amount financed in an installment sale.Įstimated residual value: This is the value of the vehicle at the end of the lease. The adjusted capitalized cost is used to determine your monthly lease payment and your obligation at early termination. You can negotiate the capitalized cost.Īdjusted capitalized cost: This is the capitalized cost minus any down payment, manufacturer's rebate, or trade-in allowance. It is comparable to the vehicle's selling price plus all related goods and services, such as insurance, warranties, registration fees, and taxes. Capitalized cost is the amount that you (the lessee) and the dealer or leasing company (the lessor) agree upon at the beginning of the lease for all items and services included in the lease. Here are some key items to watch for when considering a lease:Ĭapitalized cost: This should be comparable to the leased vehicle's purchase price. The New York law makes shopping for a new lease much easier because of the important information that every lease must disclose to you. are treated fairly throughout the lease transaction.can compare lease offers of competing lessors.The primary purpose of the Motor Vehicle Retail Leasing Act (MVRLA) is to ensure that you: We explain some of your key legal rights below. The Office of the New York State Attorney General and the Greater New York Automobile Dealers Association (GNYADA) supported passage of the law to help you and other consumers better understand lease terms. New York was the first state in the nation to require leases to disclose comprehensive information. Buying or leasing a car is one of the most important and expensive decisions that you may face as a consumer.
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