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Auto Lease |
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The term auto lease is used to refer to one the popular methods by which an automobile may be financed. Leasing allows one to drive an automobile by making relatively low monthly payments to a leasing company or bank, who actually owns the vehicle. The payments serve to compensate the lease company for the depreciation in value of the automobile during the time it is being driven. The lease company will also assess a monthly finance charge that is similar to interest on a loan. This compensates the company for the use of money that is tied up in the purchase of the automobile from a dealer. The lease company or finance company actually owns the automobile. The automobile is leased for a specific period of time and is typically returned to the lease company at the end of that time. However, most leases give the lessee the option to purchase the vehicle at lease-end. Taxes, fees, maintenance, and insurance are all the responsibility of the leasing customer, the lessee. The customer is usually responsible for excessive damage or mileage that is incurred during the auto lease term. These terms are spelled out in the lease contract. For more information,
see: The Lease Guide
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