Realized value. (1) The price received by the lessor or assignee for the leased vehicle at disposition, (2) the highest offer for the leased vehicle at disposition, or (3) the fair market value of the leased vehicle at termination. The realized value may be either the wholesale or the retail value specified in the lease agreement.
Reasonableness standard. The requirement of the Consumer Leasing Act that charges for delinquency, default, or early termination be reasonable in light of the lessor’s or assignee’s (1) anticipated or actual harm caused by such delinquency, default, or early termination; (2) difficulties in proving loss; and (3) inconvenience in obtaining a remedy.
An amount that may be offered by a manufacturer, dealer, lessor, or assignee that may be paid to you separately or credited to your lease agreement.
If you return your leased vehicle, the process of preparing it for resale or re-lease.
Reconditioning reserve. An amount that you may pay at the beginning of the lease that may be used by the lessor or assignee to offset any amounts you may owe at the end of the lease term for excessive wear and tear and excess mileage. Any remaining amount may be refunded to you.
A fee charged by a state motor vehicle department to register a vehicle and authorize its use on the public roadways.
Regulation M. The regulation issued by the Federal Reserve Board that implements the Consumer Leasing Act.
The portion of your base monthly payment that is not depreciation and any amortized amounts. This charge is similar to interest on a loan.
The end-of-term value of the vehicle established at the beginning of the lease and used in calculating your base monthly payment. The residual value is deducted from the adjusted capitalized cost to determine the depreciation and any amortized amounts. It is an estimate that may be determined, in part, by using residual value guidebooks. The residual value may be higher or lower than the realized value at the scheduled end of the lease.
Residual value guidebooks. Publications used, in part, by some lessors and assignees to establish vehicle residual values. Different guidebooks are more popular in different regions of the United States and with different lessors and assignees.
