Car Leasing Glossary - Depreciation

Depreciation (car leasing term)

The amount the vehicle declines in value over the term of the lease. The depreciation may be calculated by subtracting the residual value from the adjusted capitalized cost. Using this method, the depreciation amount will also include any amounts that were added by agreement to the price of the vehicle to arrive at the gross capitalized cost.

Car Leasing Depreciation and any amortized amounts