Car Leasing Glossary - Lease Rate

Lease Rate (car leasing term)

A percentage used by some lessors or assignees (define: assignee) to describe the rent charge portion of your monthly payment. However, 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." Some states may require lease rate disclosure using the state's definition.

Car Leasing Lease Term