The lessee under a closed-end lease is still responsible for the cost of excessive wear and mileage. Depreciation A vehicle's decline in value over the term of the lease. Any cash you give the dealer or lessor to reduce the capitalized cost of the vehicle. See cap cost reduction. The fee charge to a lessee in the event of an early termination of a lease.
Penalties vary from lease to lease and are determined at lease inception.
Excess mileage charge The fee charged for exceeding the predetermined mileage cap, usually set at 15,000 miles per year. Most gap coverage requires that you not be in default under your lease. For example, virtually all gap waivers and policies require you to pay the deductible on your ordinary insurance before the gap coverage becomes effective. Read your contract carefully to make sure you have gap protection. A company not affiliated with any particular vehicle manufacturer that leases directly to consumers or businesses.