Boca Leasing Center

Fleet Management Services

a short course in leasing 

A lease is a legal agreement between two consenting parties that specifies the terms and conditions for the rental of a particular property. In this case, the property is an automotive vehicle, and the agreement is not between you and the car dealer, but between you and a leasing company. In most lease contracts, the lessor, who comes in the form of a bank, an independent leasing company or a captive finance company, buys the vehicle from the dealer or manufacturer and then leases it to you, the lessee, dependent upon your
specific interests. Consequently, you're required to pay the lessor for the right to drive the vehicle for the duration of your particular lease. In other words, the dealer simply acts as an outside agent for the leasing company and negotiates the terms under which you will rent the vehicle. 

Similar to a loan payment, a lease payment minimizes the balance you are repaying under the terms of the lease. However, in a vehicle loan, you repay the unpaid purchase price of the vehicle through a combination of one down payment, and ensuing monthly payments to the lessor. Under a lease agreement, you are required to compensate for the portion of the purchase price that reflects the vehicle’s decline in value over the length of the lease term. This is defined as the depreciation, or residual value of the vehicle, and represents the most important part of your lease payment. 

reprinted from Automotive Lease Guide  

For More Information Contact:

Tel:  561-750-0555
Fax: 561-750-0026
Internet: info@bocaleasing.com