Car Leasing 301 - Initial Car Lease Costs

Security Deposit

The security deposit is made by the consumer to the leasing company in the circumstance that the consumer may owe the leasing company at the end of the lease agreement. This security deposit may cover fees or expenses, such as covering the payments if the leasee fails to make a monthly payment, vehicle damage, past-due charges, additional mileage, excess wear and tear on the car, or an end of lease payment. If the consumer fulfills all the terms of the lease, then the leasing company must return the security deposit in full. Some leasing companies will offer no-deposit leases on their vehicles.

Part III: First Payment on Your Auto Lease