A charge included in most lease transactions that is either paid up
front or is included in the gross capitalized cost. It may be called
a bank fee or an assignment fee. This fee usually covers a variety
of administrative costs, such as the costs of obtaining a credit report,
verifying insurance coverage, checking the accuracy and completeness
of the lease documentation, and entering the lease in data processing
and accounting systems.
A party who is covered by another party's insurance policy. The lessor
typically requires you to name the lessor as an additional insured
under your vehicle insurance policy.
The amount capitalized at the beginning of the lease, equal to the
gross capitalized cost minus the capitalized cost reduction. This
amount is sometimes referred to as the net cap cost.
See Personal property tax.
The miles the lease allows you to drive at no additional charge. Typically
this is between 12,000 and 15, 000 miles per year.
The gradual reduction of a debt by periodic payments large enough
to meet current interest payments and to repay the principal at maturity.
The loan is repaid through regular, monthly payments of principal
and interest paid for a pre-determined amount of time.
The total of any capitalized cost reduction, monthly payments paid
at signing, security deposit, title and registration fees, and other
amounts due before you take delivery of the vehicle.
The annualized cost of credit expressed as a percentage in a finance
agreement. In a lease, there is no annual percentage rate or equivalent
rate.
A risk that is not normally acceptable to insurers. It is instead
assigned to insurers participating in an assigned risk pool or plan.
Each company agrees to accept its own share of risks.
A third party that buys a lease agreement from a lessor. You become
obligated to the assignee, and the assignee generally assumes the
responsibilities of the lessor, although some obligations may remain
with the lessor.
The sale of a lease agreement and transfer of the ownership rights
for the leased vehicle from the lessor to an assignee. Many leases
are assigned at the time the lease is signed.
A lessor that sells the lease agreement and transfers the ownership
rights for the leased vehicle to an assignee.
A type of insurance that protects the insured against losses involving
automobiles. Different coverages can be purchased depending on the
needs and wants of the insured, e.g., the Liability coverages of Bodily
Injury Liability, Property Damage Liability, and Medical Payments,
and the Physical Damage coverages of Collision and Comprehensive.
The portion of the monthly payment that covers depreciation, any amortized
amounts, and rent charges. It is calculated by adding the amount of
depreciation, any other amortized amounts, and rent charges and dividing
the total by the number of months in the lease. Monthly sales/use
taxes and other monthly fees are added to this base monthly payment
to determine the total monthly payment.
A policy much broader in terms of eligibility but narrower in coverage
than the Family or Personal Auto policies. It is used mostly to insure
commercial vehicles like trucks and busses, but is also used for motorcycles
and motorscooters and to cover substandard risks, such as those insured
through assigned risk plans.
An entity that arranges for the sale or lease of vehicles through
another party.
The latest commercial Automobile Insurance coverage form, which may
be written as a monoline policy or as part of a commercial package.
This form has largely replaced the Business Auto Policy.
A policy that provides Liability and Physical damage coverages on
commercial vehicles. The Business Auto Coverage Part has replaced
this in most jurisdictions.
A lease of personal property to (1) an individual to be used primarily
for business, commercial, or agricultural purposes or (2) an organization
such as a partnership, corporation, or government agency. The Consumer
Leasing Act and Regulation M do not apply to business leases.
Shortened term for either gross capitalized cost or adjusted capitalized
cost, both required disclosures under federal law. Some states require
that the term "capitalized cost" be used in state lease disclosures.
The sum of any down payment, net trade-in allowance, and rebate used
to reduce the gross capitalized cost. The cap cost reduction is subtracted
from the gross cap cost to get the adjusted cap cost.
A finance company related to a particular automobile manufacturer
or distributor.
A lease in which you are not responsible for the difference if the
actual value of the vehicle at the scheduled end of the lease is less
than the residual value, assuming that you have stayed within the
mileage and wear limits stated in your lease agreement. However, you
are responsible for other lease requirements.
A form of Automobile Insurance that covers loss to the insured's own
vehicle caused by its collision with another vehicle or object or
its upset but not covering bodily injury or property damage liability
arising out of the collision.
A policy made up of the contracts of two or more insurers in which
each provides a different kind of insurance. This was once commonly
used in Automobile Insurance when state law limited Casualty companies
to the writing of Liability Insurance and Fire Insurance companies
to Physical Damage Insurance. Combination policies are rarely written
today.
Traditional name for physical damage coverage for losses by fire,
theft, vandalism, falling objects, and various other perils. On Personal
Auto Policies, this is now called "other than collision" coverage.
On commercial forms, it continues to be called "comprehensive" coverage.
A lease of personal property to an individual to be used 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. The Consumer Leasing Act and Federal Reserve Regulation M
cover a lease meeting all of these criteria. If any one of these criteria
is not met, for example, if the leased property is used primarily
for business purposes or if the total contractual obligation exceeds
$25,000, the Consumer Leasing Act and Regulation M do not apply. See
Total contractual obligation.
A 1976 amendment to the Truth in Lending Act that requires disclosure
of the cost and terms of consumer leases and also places substantive
restrictions on consumer leases. See Consumer lease.
Generally, the time at which you and the lessor sign the lease agreement.
Automobile Collision Insurance with a deductible that, after claims
exceeding the deductible have been paid, converts to full coverage
for all losses thereafter. Rarely written today.
Charges for extra services or products sold by the dealer, including
rust proofing, undercoating and extended warranties.
Any amount that the dealer contributes to reduce the manufacturer's
suggested retail price (sticker price or MSRP). For example providing
air conditioning at 'no additional cost'.
A fee charged by some dealers to cover the expenses of preparing a
vehicle for lease. The manufacturer may reimburse the dealer for this
expense.
An amount that a policyholder agrees to pay, per claim or per accident,
toward the total amount of an insured loss.
Your failure to meet one or more conditions of your lease agreement.
Default may result in early termination of the lease.
A vehicle's decline in value over the term of the lease. This is based
on year, make, model, mileage & overall wear. Convertibles, autos
with large engines, trucks, and vans tend to depreciate less than
other vehicles
Information on the financial and other terms and conditions of a lease,
including information required by federal regulation (Regulation M)
and by state laws. Required disclosures must be made in writing before
the lease is consummated. Advertisements that include key lease terms
(the amount of any payment or a statement of payments due before consummation
or delivery) must also include certain disclosures. Under Regulation
M, certain disclosures must be grouped together and segregated from
other information (see Segregated disclosures). Other required disclosures
appear elsewhere in the lease documents (see Nonsegregated disclosures).
A fee often charged by a lessor to defray the cost of preparing and
selling the vehicle at the end of the lease if the vehicle is not
purchased and is returned to the lessor.
A fee often charged by a lessor to cover the cost of preparing lease
documents.
The difference between the loan amount and the purchase price, which
is usually paid immediately upon purchase in the form of cash or trade-in
value. This helps to reduce the capitalized cost and thus decrease
your overall lease.
A coverage that may be added to an Automobile policy affording auto
coverage to the individuals named in the endorsement while they are
driving cars not owned by the individuals and not named in the policy.
Ending of the lease before the scheduled termination date for any
reason. The reason may be voluntary or involuntary (for example, the
vehicle is returned early, stolen, or totaled, or you default on the
lease). In most cases of early termination, you must pay an early
termination charge.
The amount you owe if your lease ends before its scheduled termination
date, calculated as described in your lease agreement. The earlier
your lease is terminated, the greater this charge is likely to be.
The charge is generally the difference between the early termination
payoff and the amount credited to you for the vehicle.
The total amount you owe if your lease is terminated before the scheduled
end of the term. The payoff is calculated as described in your lease
agreement before subtracting the value credited to you for the vehicle.
The early termination payoff may include the unpaid lease balance
and other charges.
Protects the employer for liability arising from the use by employees
of their own cars on company business.
A federal law that prohibits discrimination in credit transactions
on the basis of race, color, religion, national origin, sex, marital
status, age, source of income, or the exercise of any right under
the Consumer Credit Protection Act.
A charge by the lessor for miles driven in excess of the maximum specified
in the lease agreement. The excess mileage charge is usually between
$0.10 and $0.25 per mile. Suppose, for example, that your lease specifies
a maximum of 36,000 miles and a charge of $0.15 per mile over the
maximum. If you drive 37,000 miles, the excess mileage charge will
be $0.15 x 1,000, or $150. Open-end leases typically do not include
an excess mileage charge.
Amount charged by a lessor to cover wear and tear on a leased vehicle
beyond what is considered "normal." The charge may cover both interior
and exterior damage, such as upholstery stains, body dents and scrapes,
and tire wear beyond the limits stated in the lease agreement. Open-end
leases typically do not include an excessive wear and use charge.
Extended Non-Owner Liability An endorsement attached to a Personal
Auto Policy to provide broader liability coverage only for specifically
named individuals. When attached, it covers non-owned autos furnished
for the regular use of an insured, use of vehicles to carry persons
or property for a fee, and broader coverage for business use of vehicles.
A contract that can be purchased to cover the costs of parts and service
on a vehicle beyond the manufacturer's original warranty period.
The price the dealer paid the manufacturer for the car. This number
falls under the manufacturer's suggested retail price (MSRP), which
is the also known as the window sticker or the list price.
A program offered by manufacturers to boost sales of slower-moving
cars or to reduce excess inventory. These incentives are passed directly
from the manufacturer to the dealer, who may or may not elect to pass
the savings onto the customer.
The amount that a willing buyer would pay to a willing seller to purchase
certain property at a particular point in time.
Your right to purchase the vehicle you have leased according to terms
specified in your lease agreement for a price determined by referring
to a readily available guide to used car values or to another independent
source.
A form that was once widely used to write Automobile Insurance for
individual car owners. It is a package policy that provides protection
against legal liability for bodily injury and property damage to others,
injury to the insured and other occupants of the vehicle, and damage
to the vehicle itself. It has largely been replaced by the more modernized
Personal Auto Policy.
See Uninsured Motorists Endorsement.
The federal agency with rule-writing authority for the Truth in Lending
Act, of which the Consumer Leasing Act is part; officially known as
the Board of Governors of the Federal Reserve System. The Board also
performs other functions related to U.S. monetary policy, financial
system stability, bank supervision and regulation, and the nation's
payments system.
The federal agency responsible for enforcing the Truth in Lending
Act, of which the Consumer Leasing Act is part, among leasing companies,
finance companies, and lessors not regulated by other federal agencies.
The Federal Trade Commission also performs other functions related
to its role of ensuring that the nation's markets function competitively,
enforcing other statutes affecting consumer financial services, and
enforcing the Federal Trade Commission Act, which prohibits unfair
or deceptive acts or practices.
The total amount you will pay for taxes, licenses, registration, title,
and official (governmental) fees over the term of your lease. Because
fees and taxes may change during the term of your lease, they may
be stated as estimates.
A clause that states that a policy conforms to the financial responsibility
laws of any state in which the insured is operating the insured vehicle.
Your right to purchase the vehicle you have leased for a fixed price
as specified in your lease agreement.
An insurance contract that applies to a number of vehicles. Usually
5 or more self-propelled vehicles constitute a fleet.
A lease in which the lessor assumes responsibility for all manufacturer-recommended
maintenance and service on the vehicle. The lease may also cover additional
mechanical repairs and servicing during the term of the lease. The
cost of this service usually is included in the gross capitalized
cost or is added to the base monthly payment.
In the event a leased vehicle is stolen or totaled, the difference
between the early termination payoff and the amount for which the
vehicle is insured before the insurance deductible and any other policy
deductions are subtracted. The definition of gap amount may vary in
different states or in different lease agreements.
A plan that provides you financial protection in case your leased
vehicle is stolen or totaled in an accident. There are two types of
gap coverage. One is a waiver by the lessor of the gap amount if the
vehicle is stolen or totaled. The other is a contract by a third party
to cover the gap amount. Under either type, you may remain responsible
for the insurance deductible and for other amounts deducted from the
insured amount of the vehicle by your insurance company.
A commercial Automobile Insurance coverage form used to insure automobile
dealers, repair shops, service stations, and garage risks. Garage
liability, garage keeper's coverage, and physical damage coverages
may be included.
A discount granted to students with high scholastic ratings. There
is a proven relationship between good grades and safe driving.
The agreed-upon value of the vehicle, which generally may be negotiated,
plus any items you agree to pay for over the lease term (amortized
amounts), such as taxes, fees, service contracts, insurance, and any
prior credit or lease balance.
The income of the borrower before taxes or expenses are deducted.
For qualifying purposes this information helps to determine a lessor's
risk.
Autos the insured leases, hires, rents, or borrows, but not autos
owned by employees or members of their households.
Amounts rebated or credited, or special programs offered, to consumers
or lessors to encourage the lease of certain vehicles. These companies
are not directly affiliated with any vehicle manufacturer.
A leasing company that offers leases directly to consumers and businesses
and is generally not affiliated with a particular automobile manufacturer.
A contract in which one party agrees to pay for another party's financial
loss resulting from a specified event (for example, a collision, theft,
or storm damage). Lease agreements generally require that you maintain
vehicle collision and comprehensive insurance as well as liability
insurance for bodily injury and property damage.
The process of obtaining verbal or written confirmation of required
coverage from your insurance agent or company.
The periodic charge, expressed as a percentage, for use of credit.
This rate is based on current market trends and credit history.
The price the dealer paid the manufacturer for the car. This number
falls under the manufacturer's suggested retail price (MSRP), which
is the also known as the window sticker or the list price.
A fee charged for a past-due payment. This charge is usually either
a percentage of the lease payment or a fixed dollar amount.
A payment received after the specified due date. In most cases, a
late payment triggers a late charge after any grace period.
A contract between a lessor and a lessee for the use of a vehicle
or other property, subject to stated terms and limitations, for a
specified period and at a specified payment.
See Rent or rent charge.
Continuation of a lease agreement beyond the original term, often
one month at a time. There may be a charge for extending the lease.
If the extension continues beyond six months, new lease disclosures
must be provided.
See Money factor.
A percentage used by some lessors to describe the rent charge portion
of your monthly payment. No federal standard exists for calculating
the lease rate. Any rates or factors used in lease calculations do
not have to be disclosed under federal law. If a lease rate is given,
as a percentage in an advertisement or on any lease form, the ad or
form must also state, "This percentage may not measure the overall
cost of financing this lease."
The period of time for which a lease agreement is written.
State laws that provide remedies to consumers for vehicles that repeatedly
fail to meet certain standards of quality and performance. Lemon laws
vary by state and may not cover leased vehicles.
The party to whom the vehicle is leased. In a consumer lease, the
lessee is you, the consumer. The lessee is required to make payments
and to meet other obligations specified in the lease agreement.
The original owner of the vehicle or property being leased. This is
the finance company that purchases the vehicle and then agrees to
"rent" it to the lessee for a stipulated length of time, under a contract
agreement known as a lease.
A ratio determined by dividing the sales price or appraised value
into the loan amount, expressed as a percentage. For example, with
a sales price of $10,000 and an auto loan of $9,000, your loan to
value ratio would be 90%.
A commitment you obtain from a lender assuring you a particular interest
rate or feature for a definite time period. Provides protection should
interest rates rise between the time you apply for a loan, acquire
loan approval, and, subsequently, close the loan and receive the funds
you have borrowed.
A federal excise tax assessed on vehicles with a gross vehicle weight
of less than 6,000 pounds and a value exceeding a threshold amount,
which is adjusted periodically for inflation.
Care for the vehicle required by the lease agreement. Maintenance
may include manufacturer-recommended servicing and any repairs needed
to keep the vehicle in good operating condition.
A lease agreement in which some or all of the vehicle maintenance
and servicing is the responsibility of the lessor.
The fixed mileage limit for the lease term. If you exceed this limit,
you may have to pay an excess mileage charge.
A number, often given as a decimal, used by some lessors to determine
the rent charge portion of your monthly payment. This number is not
a lease rate and cannot be converted to a lease rate by moving the
decimal point. The money factor is roughly equivalent to the APR divided
by 2,400. For example, a money factor of 0.00333 approximately equals
an APR of eight percent (eight divided by 2,400 equals 0.00333). Sometimes
dealers don't mention the decimal places in a money factor, assuming
that you will know that the decimal places are implied. For example,
if the money factor is .00333, the dealer might simply say the money
factor is "333."
This term may refer to one of two required federal disclosures. See
Base monthly payment and Total monthly payment.
The state and local taxes that you must pay monthly when you lease
a vehicle. These payments, if any, are added to your base monthly
payment and paid as part of your total monthly payment.
The record of an automobile driver's accidents and/or traffic violations.
Manufacturer's suggested retail price, or the recommended selling
price for a vehicle and each of its optional accessories. Also known
as a "sticker price."
An Automobile Insurance policy issued to someone who does not own
an automobile, but who drives borrowed or rented autos.
Many states have passed laws permitting the individual automobile
accident victim to collect directly from his or her own insurance
company for medical and hospital expenses regardless of who was at
fault in the accident. There are many variations in the laws of those
states that have no-fault statutes. Most states do allow the individual
to sue the negligent party if the amount of damages exceeds a certain
stated limit. See also Keeton-O'Connell Plan.
Any autos not owned, leased, hired, or borrowed which are used in
connection with the business.
Disclosures required by Federal Reserve Regulation M that may be presented
in any order and may appear anywhere in the lease documents except
with the segregated disclosures. Page 2 of the sample lease form shows
these disclosures. See also Segregated disclosures.
A lease agreement in which the amount you owe at the end of the lease
term is based on the difference between the residual value of the
leased property and its realized value. Your lease agreement may provide
for a refund of any excess if the realized value is greater than the
residual value. In an open-end consumer lease, assuming you have met
the mileage and wear standards, the residual value is considered unreasonable
if it exceeds the realized value by more than three times the base
monthly payment (sometimes called the "three-payment rule"). If you
believe the amount owed at the end of the lease term is unreasonable
and refuse to pay, the lessor may attempt to prove that the residual
value was reasonable when it was set at the beginning of the lease.
However, if you cannot reach a settlement with the lessor, you cannot
be forced to pay the excess amount unless the lessor brings a successful
court action and pays your reasonable attorney's fees.
See Purchase option.
See Early termination payoff.
A revised edition of the Family Auto policy, with simplified wording
used in the policy provisions. It is the most common auto insurance
policy sold today.
The formal name usually given to no-fault benefits in states that
have enacted mandatory or optional no-fault Automobile Insurance coverages.
PIP usually includes benefits for medical expenses, loss of work income,
essential services, accidental death and funeral expenses.
A tax on personal property. State laws govern whether personal property
taxes apply to a leased vehicle; your lease agreement governs whether
you or the lessor will pay these taxes.
A term indicating damage from such perils as collision, comprehensive,
fire and theft or any damage to the vehicle itself.
Charges imposed by a dealer for preparing a newly purchased car for
delivery to the buyer. Includes filling the gas tank, verifying appropriate
fluid levels, last minute touch-up cleaning, etc. Also known as the
'prep fee.'
The portion of the gross capitalized cost representing the amount
due under a previous credit contract after crediting the value of
the vehicle traded-in on the lease.
The portion of the gross capitalized cost representing the balance
due from a previous lease agreement after crediting the value of the
previously leased vehicle.
Four-wheeled motor vehicles of the private passenger, station wagon
or van type, designed for use on public highways and subject to motor
vehicle registration.
Your right to buy the vehicle you have leased, before or at the end
of the lease term, according to terms specified in the lease agreement.
Your lease agreement may or may not include a purchase option.
An amount, in addition to the purchase price, you may have to pay
to exercise any purchase option in your lease agreement.
Usually used to determine rates for automobiles owned by a business.
Beyond a certain number of miles in radius, e.g., 50, the rate is
increased.
(1) The price received by the lessor for the leased vehicle at disposition,
(2) the highest offer for the leased vehicle at disposition, or (3)
the fair market value of the leased vehicle at termination. The realized
value may be either the wholesale or the retail value as specified
in the lease agreement.
The requirement of the Consumer Leasing Act that charges for delinquency,
default, or early termination be reasonable in light of the lessor's
or assignee's (1) anticipated or actual harm caused by such delinquency,
default, or early termination, (2) difficulties in proving loss, and
(3) inconvenience in obtaining a remedy.
An amount offered by some manufacturers, dealers, or lessors that
may be paid to you separately or credited to your lease agreement.
The process of preparing a vehicle for resale or re-lease if you return
it.
An amount that you may pay at the beginning of the lease that may
be used by the lessor to offset any amounts you may owe at the end
of the lease term for excessive wear and use and excess mileage. Any
remaining amount may be refunded to you.
A fee charged by a state motor vehicle department to register a vehicle
and authorize its use on the public roadways.
The regulation issued by the Federal Reserve Board that implements
the Consumer Leasing Act.
The portion of your base monthly payment that is not depreciation
or any amortized amounts. This charge is similar to interest on a
loan.
The end-of-term value of the vehicle established at the beginning
of the lease and used in calculating your base monthly payment. The
residual value is deducted from the adjusted capitalized cost to determine
the depreciation and any amortized amounts. It is an estimate that
may be determined in part by using residual value guidebooks. The
residual value may be higher or lower than the realized value at the
scheduled end of the lease.
Publications used in part by some lessors to establish vehicle residual
values. Different guidebooks are more popular in different regions
of the United States and with different lessors.
A system in which points are assigned for traffic violations and certain
accidents, and each point adds a percentage surcharge to the rating
factor. It is similar to merit rating.
Sales/use taxes, which vary from state to state, are assessed on both
leased and purchased vehicles. There are often differences in what
amounts are taxed and when the taxes are assessed. In a lease, sales/use
taxes may be assessed on (1) the base monthly payment, (2) any capitalized
cost reduction, and (3) in a few states, the adjusted capitalized
cost. In most states, the sales/use tax on the base monthly payment
is paid monthly; in some states, however, the tax is due at lease
inception. Sales/use taxes on the capitalized cost reduction and the
adjusted capitalized cost are usually due at lease inception. If you
exercise any purchase option, separate taxes may apply.
An amount you may be required to pay, usually at the beginning of
the lease, which may be used by the lessor in the event of default
or at the end of the lease to offset any amounts you owe under the
lease agreement. Any remaining amount may be refunded to you.
If stated in your lease agreement, a lessor's legal right to your
property (such as stocks or bonds) that secures payment of your obligation
under the lease agreement.
Disclosures required by Federal Reserve Regulation M that must be
grouped together and separated from other information in the lease
documents. The first page of the sample lease form shows the disclosures
that must be segregated. See also Nonsegregated disclosures.
A contract that you may purchase to cover such expenses as the repair
or replacement of vehicle components and that may pay for related
services such as towing or replacement rental cars. In most cases,
service contracts do not cover routine maintenance unless specified
in the lease agreement.
A lease that requires a single payment made in advance rather than
periodic payments made over the term of the lease. This lump sum payment
may be less than the total amount you would pay were you to make periodic
payments over the term of the lease.
An Automobile policy with a single limit of liability applying to
bodily injury and property damage and a corresponding limit applying
to medical payments. Broad physical damage coverage could be added
to it. This policy, which was designed for private passenger vehicles,
has become obsolete. See Personal Auto Policy.
Commercial automobile physical damage coverage for loss by the specified
perils of fire, lightning, explosion, theft, windstorm, hail, earthquake,
flood, vandalism, or the sinking, burning, collision or derailment
of any conveyance transporting a covered auto. Comprehensive coverage
is slightly broader.
Statements in the lease agreement defining what the lessor means by
"normal wear and use" and setting forth the requirements for the vehicle's
condition at the end of the lease. Standards may address such things
as the amount of tread remaining on the tires at the end of the lease
or the type of dents or scratches that are acceptable. These standards
must be reasonable.
Contact you state's Insurance Department at one of the numbers below:
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Washington D.C.
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
|
(205) 269-3550
(907) 465-2515
(602) 912-8400
(501) 686-2900
(213) 897-8921
(303) 894-7499
(203) 297-3800
(302) 739-4251
(202) 727-8002
(850) 413-3100
(404) 656-2056
(808) 586-2790
(208) 334-2250
(217) 782-4515
(317) 232-2385
(515) 281-5705
(913) 296-7801
(502) 564-3630
(504) 342-5900
(207) 582-8707
(410) 333-6200
(617) 521-7777
(517) 373-9273
(651) 297-7161
(601) 359-3569
(314) 751-2640
|
|
Montana
Nebraska
New Hampshire
New Jersey
New Mexico
Nevada
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
|
(406) 444-2040
(402) 471-2201
(603) 271-2261
(609) 292-5363
(505) 827-4601
(702) 687-4270
(212) 602-0203
(919) 733-2032
(701) 224-2440
(614) 466-2658
(405) 521-2828
(503) 378-4271
(717) 787-5173
(401) 277-2223
(803) 737-6160
(605) 773-3563
(615) 741-2176
(512) 463-6464
(801) 538-3800
(802) 828-3301
(804) 371-9741
(206) 753-7301
(304) 558-3394
(608) 266-0102
(307) 777-7401
|
Oral or written contractual transfer of your right to use the leased
vehicle to another person. Such a transfer is usually prohibited without
the lessor's approval.
A program or plan in which the manufacturer, the finance company,
or the lessor subsidizes certain items.
See Disposition fee or disposal fee.
See Open-end lease.
The point at which the insured may bring tort action under a modified
No-Fault Auto Plan. Many of these plans prohibit tort action for pain
and suffering unless medical bills exceed some figure, like $1,000,
or disfigurement or death occurs.
Legal document that identifies the owner of the vehicle. The lessor,
not you, holds title to the leased vehicle.
The sum of the capitalized cost reduction, the total of base monthly
payments, and other charges due under the lease agreement. The total
contractual obligation excludes any security deposit as well as sales
taxes and any other fees and taxes paid to a third party. If the total
contractual obligation exceeds $25,000, the Consumer Leasing Act does
not apply.
The base monthly payment plus monthly sales or use taxes and any other
monthly charges.
The sum of the periodic payments, the end-of-term disposition fee,
any "other charges," and all "amounts due at lease signing or delivery,"
minus refundable amounts such as a security deposit and any monthly
payments included in the "amount due at lease signing or delivery."
Optional Automobile coverage that pays the cost up to a fixed amount
for the towing of a disabled automobile.
The net value of your vehicle credited toward the purchase or lease
of another vehicle. If you own the vehicle being traded-in, you sell
it to the dealer or lessor. If you are leasing the vehicle being traded-in,
you are turning in the vehicle (either at the scheduled end of the
lease or upon early termination) to the dealer or lessor. The amount
credited may be positive or negative depending on the value of the
vehicle and any remaining balance on your credit, loan, or lease agreement.
An arrangement whereby one trucker transfers a trailer containing
a shipment to a second trucker for continued transportation.
Coverage for the legal liability of truckers for loss or damage to
non-owned trailers and equipment that are in the insured's possession
under a written trailer interchange agreement.
Automobile coverage for transportation expenses incurred by the named
insured only in the event of theft of an entire covered auto. Coverage
begins after a 4-hour waiting period and is subject to a daily limit
and maximum dollar limit, and it applies only when the insured has
physical damage coverage for theft.
A commercial Automobile Insurance coverage form used to insure truckers
who are engaged in the business of transporting goods for others.
Coverage in an Automobile Insurance policy under which the insurer
will pay damages up to specified limits for bodily injury damages,
if the limits of liability under the liable motorist's policy are
exhausted and he cannot pay the full amount he is liable for.
The process of verifying data and approving a loan. Includes a credit
check, documentation and terms.
Several states have laws that provide for reimbursement to a person
injured in an automobile accident who has been unable to collect from
the person responsible.
See Monthly sales/use tax.
Leasing of previously owned or driven vehicles.
A vehicle identification number (VIN) is a vehicle's serial number.
It consists of 17 characters, each character or set of characters
pertaining to a different aspect of the vehicle, such as year, make,
model, engine size and body style. Every vehicle manufactured since
1981 has a VIN.
See Closed-end lease.
A guarantee that the vehicle will function and perform as specified.
A warranty usually covers specified mechanical problems during a specified
period of time or number of miles. |
