Disclosure statements in the car lease agreement, is often outlined as ‘Federal Consumer Leasing Act Disclosures’ (define: consumer lease act). By law (federal), lease contracts must contain this component, in that it discloses important information the consumer must know. This may cover areas as:
Amount due at signing of the lease
Monthly payments owed to the leasing company
Total payments owed
Detailed explanation of the wear and tear
Other charges
How the monthly payment is calculated
Statement on terminating the lease early
The Federal Consumer Leasing Act (define: consumer leasing act), requires that monthly payments (define: base monthly payments), capitalized cost, residual value, capitalized cost reduction, lease charges, and any other fees or charges be detailed explicitly I the lease agreement. However, the Federal Consumer Leasing Act does not regulate the actual figures in the agreement, such as the value or price of the vehicle, any trade-in credits, financing fees or even if the monthly payment figure was calculated correctly. Notably, numerous lease agreements have been found have errors, whether on purpose or no, which will be the liability on the consumer once the consumer signs the agreement. This is why it’s extremely important for the consumer to review the contacts and confirm all figures and costs align accordingly – before signing.
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