Car Lease Glossary – Part 2
End-of-Lease Purchase Price – This amount is set up front and determines what you will pay for the vehicle if you choose to purchase it at the end of your lease. Excess Mileage Charge – This is the per-mile fee that you will be charged if the vehicle is driven over the maximum amount of miles allowed per the lease contract. Excess Wear-and-Tear – This is the fee you will have to pay if the vehicle is returned with excessive amounts of wear or damage. GAP Insurance – This type of insurance covers any difference between what your insurance pays out and what you owe if your vehicle is completely lost in an accident. Lease Term – The number of months you agree to pay for your lease. Lessee – This is the individual who leased the vehicle from the dealer. Lessor – This is the dealer from which the lease is obtained. Monthly Payment – The payment amount agreed to be paid every month for the term of the lease. Purchase Option – Gives the lessee the option to purchase the vehicle at the end of ...