LEASING COSTS


A Lease Explained


A lease is a contract between a lessor (the property owner) and a lessee (the property user) for the use of a property subject to stated terms and limitations for a specified period and at a specified payment.


Leasing has become a popular alternative to buying — under certain circumstances. For instance, you might consider leasing furniture for an apartment you'll use only for a year. The Consumer Leasing Act requires lessors to give you the facts about the costs and terms in their contracts, to help you decide whether leasing is a good idea.

A consumer lease is a contract between a lessor and lessee for the use of personal property primarily for personal, family, or household purposes for a period of more than four months and with a total contractual obligation of no more than $25,000. A lease meeting all of these criteria is covered by the Consumer Leasing Act. It covers, for example, long-term leases of cars, furniture, and appliances, but it does not cover daily car rentals or apartment leases.


Certain information on cost and terms must be grouped together and separated or segregated from other information in the lease documents and presented in a prescribed format. First, these disclosures provide a snapshot of what you will pay


  • at the beginning of the lease - which means the amount you will pay at lease signing or delivery
  • during the lease - that is, the monthly or periodic payments
  • other charges that you will face
  • and the total amount you will pay over the lease term.





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