4,241.94 12,333.12

00/00/00

Dealer or Leasing Company

256.94

00/00/00

47 256.94

1st

400.00

0

400.00

J. Smith

16,368.12

2,500.00

0

1,741.94

4,241.94

3,500.00

256.94

350.00

75.00

60.00

0

4,241.94

22,300.00

3,500.00

18,800.00

12,350.00

6,450.00

5,295.00

11,745.00

48

244.69

12.25

0

256.94

12,350.00

15,000 .15

150.00

21,500.00

Federal Consumer Leasing Act Disclosures

Date 

Lessor(s) Lessee(s) 

Amount Due at

Lease Signing

or Delivery

(Itemized below)*

$ 

Monthly Payments

Your first monthly payment of $ 

is due on , followed by

 payments of $ due on

the of each month. The total of your

monthly payments is $ .

Other Charges (not part of your monthly

payment)

Disposition fee (if you do

not purchase the vehicle) $

Total $

Total of Payments

(The amount you will have

paid by the end of the lease)

$ 

* Itemization of Amount Due at Lease Signing or Delivery

Your monthly payment is determined as shown below:

Gross capitalized cost. The agreed upon value of the vehicle ($ ) and any items

you pay over the lease term (such as service contracts, insurance, and any outstanding prior credit

or lease balance) ................................................................................................................................................................. $

If you want an itemization of this amount, please check this box. 

Capitalized cost reduction. The amount of any net trade-in allowance, rebate, noncash credit, or cash you pay that

reduces the gross capitalized cost ...................................................................................................................................... 

Adjusted capitalized cost. The amount used in calculating your base monthly payment ................................................ =

Residual value. The value of the vehicle at the end of the lease used in calculating your base monthly payment .......... 

Depreciation and any amortized amounts. The amount charged for the vehicles decline in value

through normal use and for other items paid over the lease term ...................................................................................... =

Rent charge. The amount charged in addition to the depreciation and any amortized amounts ....................................... +

Total of base monthly payments. The depreciation and any amortized amounts plus the rent charge ............................ =

Lease payments. The number of payments in your lease ................................................................................................. ÷

Base monthly payment .................................................................................................................................................... =

Monthly sales/use tax ....................................................................................................................................................... +

................................................................................................................................................ +

Total monthly payment .................................................................................................................................................... = $

Early Termination. You may have to pay a substantial charge if you end this lease early. The charge may be up to several

thousand dollars. The actual charge will depend on when the lease is terminated. The earlier you end the lease, the greater

this charge is likely to be.

Excessive Wear and Use. You may be charged for excessive wear based on our standards for normal use and for mileage in excess

of miles per year at the rate of per mile.

Purchase Option at End of Lease Term. You have an option to purchase the vehicle at the end of the lease term for $ 

and a purchase option fee of $ .

Other Important Terms. See your lease documents for additional information on early termination, purchase options and maintenance

responsibilities, warranties, late and default charges, insurance, and any security interest, if applicable.

Amount Due at Lease Signing or Delivery:

Capitalized cost reduction $

First monthly payment

Refundable security deposit

Title fees

Registration fees

Total $

How the Amount Due at Lease Signing or Delivery will be paid:

Net trade-in allowance $

Rebates and noncash credits

Amount to be paid in cash

Total $

4 These charges are in addition to your

monthly payment. A disposition fee, if any, is

paid at the end of the lease and covers the

lessors costs of selling the vehicle. These

charges do not include amounts that may be

due if you end the lease early or exceed wear or

mileage limits.

1 You are the lessee. Vehicle lessors are required by federal law to provide you with leasing information

on a form like this. This sample is for a closed-end lease—the most common type

of lease. An open-end lease has slightly different requirements.

Lessors also are required to tell you about:

• fees, taxes, and insurance requirements

• standards for wear and use, maintenance responsibilities, and warranties

• early termination charges, security interests, and late payment charges

• your option to purchase the vehicle.

This information, along with other important details, may be in other places in

your lease agreement, so be sure to read it carefully.

16 Try to have the mileage limits in the lease

match your driving needs. It may be less

expensive to increase the mileage limit at the

beginning than to pay for extra miles at the end

of the contract.

15 Make sure you understand what counts as excessive wear

in your contract.

10 This amount is like the interest or finance charge on a loan or

credit agreement.

12 These are taxes added to your base monthly payment that are not

included in the gross capitalized cost.

13 In addition to your monthly payment, you may have to pay

personal property taxes, registration, and other items. Look for these

amounts in your contract.

17 If you have a purchase option, a dollar amount or a reference

to an independent pricing guide should be provided.

8 Like the purchase price when you buy a vehicle, the gross

capitalized cost is negotiable. If you want an explanation of what this

amount includes, ask for an itemization.

9 Like the down payment when you buy a vehicle, this amount is

subtracted from the gross capitalized cost.

Sample Consumer Leasing Form

5 Refundable amounts such as a security

deposit are not included. The total also does not

include amounts that may be due if you end the

lease early or exceed wear or mileage limits.

In this example, 5 = ( 2 + 3 + 4 ) 

(payments due at lease signing + security

deposit).

2 This is the amount you must pay up-front to take delivery

of the vehicle. See 6 for an itemization.

3 Your monthly payment includes depreciation, the rent charge,

taxes, and other fees that are capitalized. See 7 for the way your

monthly payment is calculated.

6 Totals of columns 6a and 6b should equal

one another.

7

6

3

9

12

14

15 16

1

13

5

17

2

6a 6b

4

11

8

10

14 Read your contract carefully to understand

how early termination charges will be calculated.

11 The lease term may also be disclosed on this line. Generally, the

number of payments and the number of months in the lease term are

the same. However, there are some leases where the numbers may be

different, such as a single payment lease that would disclose 1 as

the number of payments and may disclose 24 months as the lease

term.
Leasing

Vehicle

Keys to

A Consumer Guide

Leasing

You do not own the vehicle. You get to use it butmust return it at the end of the lease unless youchoose to buy it.Up-front costs may include the first months payment, a refundable security deposit, a capitalizedcost reduction (like a down payment), taxes, registration and other fees, and other charges.Monthly lease payments are usually lower thanmonthly loan payments because you are payingonly for the vehicles depreciation during the leaseterm, plus rent charges (like interest), taxes, andfees.You are responsible for any early terminationcharges if you end the lease early.You may return the vehicle at lease end, pay anyend-of-lease costs, and walk away.The lessor has the risk of the future market valueof the vehicle.Most leases limit the number of miles you maydrive (often 12,00015,000 per year). You cannegotiate a higher mileage limit and pay a highermonthly payment. You will likely have to paycharges for exceeding those limits if you returnthe vehicle.Most leases limit wear to the vehicle during thelease term. You will likely have to pay extracharges for exceeding those limits if you returnthe vehicle.At the end of the lease (typically 24 years), youmay have a new payment either to finance thepurchase of the existing vehicle or to lease anothervehicle.

Buying

You own the vehicle and get to keep it at the endof the financing term.Up-front costs include the cash price or a downpayment, taxes, registration and other fees, andother charges.Monthly loan payments are usually higher thanmonthly lease payments because you are payingfor the entire purchase price of the vehicle, plusinterest and other finance charges, taxes, andfees.You are responsible for any pay-off amount if youend the loan early.You may have to sell or trade the vehicle whenyou decide you want a different vehicle.You have the risk of the vehicles market valuewhen you trade or sell it.You may drive as many miles as you want, buthigher mileage will lower the vehicles trade-in orresale value.There are no limits or charges for excessive wearto the vehicle, but excessive wear will lower thevehicles trade-in or resale value.At the end of the loan term (typically 46 years),you have no further loan payments.

Ownership

Up-front costs

Monthlypayments

Earlytermination

Vehicle return

Future value

Mileage

Excess wear

Leasing is different from buying.Heres how . . .

End of term

Keys to Vehicle Leasing

This brochure gives an overview of the

most common type of vehicle lease—a

closed-end lease. With this type oflease, you may return the vehicle at

lease end, pay any end-of-lease costs, and “walkaway.” This brochure also provides you with acomparison of leasing and buying.The federal Consumer Leasing Act gives you theright to information that helps you understand andnegotiate your lease. A number of leasing optionsare available. Look for the lease that best fits yourneeds, your budget, and your driving patterns.Inside is a sample form like the one your dealer orleasing company must give you before you sign alease.

Consider beginning, middle,and end-of-lease costs

At the beginning of the lease, you may have topay your first monthly payment; a refundablesecurity deposit or your last monthly payment;other fees for licenses, registration, and title; acapitalized cost reduction (like a down payment);an acquisition fee (also called a processing orassignment fee); freight or destination charges;and state or local taxes.During the lease, you will have to pay yourmonthly payment; any additional taxes not includedin the payment such as sales, use, and personalproperty taxes; insurance premiums; ongoingmaintenance costs; and any fees for late payment.You’ll also have to pay for safety and emissionsinspections and any traffic tickets. If you end yourlease early, you may have to pay substantial earlytermination charges.At the end of the lease, if you don’t buy thevehicle, you may have to pay a disposition fee andcharges for excess miles and excess wear.

Leasing form inside 

î FRB1-899

American Financial Services Association and theAmerican Automobile Manufacturers AssociationAmerican Advertising Federationpreparing this brochure:The following agencies and organizations cooperated in

AFSA Education Foundation

National Vehicle Leasing AssociationNational Automobile Dealers AssociationFlorida Attorney GeneralFederal Trade CommissionFederal Reserve SystemCooperative Extension SystemConsumer Bankers AssociationConsumer ActionAssociation of International Automobile ManufacturersAssociation of Consumer Vehicle LessorsArizona Attorney General

Consider . . .offers and negotiate some terms.

You can compare different lease



can reduce your monthly paymentthe agreed-upon value of the vehiclea lower value



reductionup-front payments, including the capitalized cost

 the length of the lease the monthly lease payment any end-of-lease fees and charges

milesthe mileage allowed and per-mile charges for excess

 the option to purchase either at lease end or earlier

accident.protects you if the vehicle is stolen or totaled in anwhether your lease includes gap coverage, which

other lease offerings.Ask for alternatives to advertised specials and

and responsibilitiesKnow your rights

When you lease a vehicle, you have the right to



milesuse it for an agreed-upon number of months and



and charges, and walk awayturn it in at lease end, pay any end-of-lease fees

 buy the vehicle if you have a purchase option

services that apply to the vehicle.take advantage of any warranties, recalls, or other

You may be responsible for



be.extra miles and how much the per-mile charge willmany miles you can drive before you must pay forvehicle. Your lease agreement will tell you howexcess mileage charges when you return the



damage or worn tires, are in your lease agreement.The standards for excess wear, such as for bodyexcess wear charges when you return the vehicle.



charges are likely to be.The earlier you end the lease, the greater thesesubstantial payments if you end the lease early.

Division of ConsumerYou also can contactstate’s consumer protection agency or Attorney General’s office.lease agreement. For information on these laws, contact yourprovide you with additional consumer rights not covered in yourThe federal Consumer Leasing Act and some state laws mayinstitution for more information.Contact your dealer, manufacturer, leasing company, or financialFor more information . . .

& Community Affairs

Washington, DC 20551Federal Reserve BoardMail Stop 800

or Consumer Response Center

6Federal Trade Commission

th and Pennsylvania Ave., N.W.

Washington, DC 20580

site: http://www.federalreserve.gov/pubs/leasingLearn more about leasing on the Federal Reserve Board’s WebMail Stop 127, Washington, DC 20551.Services, Board of Governors of the Federal Reserve System,To obtain additional copies of this brochure, contact Publications