Dealer documentation fee. See Documentation fee.

Dealer preparation fee. A fee charged by some dealers to cover the expenses of preparing a vehicle for lease. The dealer may be reimbursed by the manufacturer for this expense.


Your failure to meet one or more conditions of your lease agreement. Default may result in early termination of the lease.

Depreciation and any amortized amounts.

Total amount charged to cover the vehicle’s projected decline in value through normal use during the lease term and other items that are paid for over the lease term. It is calculated as the difference between the adjusted capitalized cost and the vehicle’s residual value. This amount is a major part of your base monthly payment.


Information on the financial and other terms and conditions of a lease, including information required by federal regulation (Regulation M) and by state laws. Required disclosures must be made in writing before the lease is consummated. Advertisements that include key lease terms (the amount of any payment or a statement of payments due before consummation or delivery) must also include certain disclosures. Under Regulation M, certain disclosures must be grouped together and segregated from other information (see Segregated disclosures). Other required disclosures appear elsewhere in the lease documents (see Nonsegregated disclosures).

Disposition fee or disposal fee.

A fee often charged by a lessor or assignee to defray the cost of preparing and selling the vehicle at the end of the lease if the vehicle is not purchased and is returned to the lessor or assignee.

Documentation fee.

A fee to cover the cost of preparing lease documents charged by some dealerships (sometimes called a dealer documentation fee) or other lessors.

Down Payment.

An initial cash payment in a lease that reduces the capitalized cost or is applied to other amounts due at lease signing. See Capitalized cost reduction.