The payoff is calculated as described in the lease agreement. Leases generally contain a mileage limitation to prevent excess mileage from being driven, and therefore, excess depreciation of the vehicle. A set mileage allowance is usually stipulated in the lease agreement. If this limit is exceeded, the lessee is charged for each mile driven exceeding the allowable mileage, as specified in the lease. However, if at lease inception you feel you will be driving more then is set forth in the lease, you can add the anticipated excess mileage to your lease to be paid as part of your monthly payment.
Leases contain specific standards for excessive wear and use.
At the end of the lease, if the lessee does not purchase the vehicle, the lessee must either repair the excessive wear and use, or pay the lessor the estimated cost of repairs. A contract between lessor and lessee for a specified time period and a specific payment. The customer who signs a lease with the lessor and pays for use of the vehicle. The total amount of mileage the vehicle may be driven over the term of the lease, without incurring liability for additional mileage charges. The lessee may be entitled to a refund if the realized value is greater than the residual balance.