in the event of theft or damage to the vehicle that results in a total loss, there may be a gap between the amount due upon early termination and the proceeds of your insurance settlement and deductible. in consideration of the mutual covenants and promises in this lease the sufficiency of which the parties acknowledge, the lessor leases the vehicle described in this lease to the lessee, and the lessee leases the vehicle from the lessor on the following terms: the lessee will ensure that the lessor is named as registered owner, and as “additional insured” and loss payee in the insurance policy (the “insurance policy”). the value of the vehicle at the end of the lease used in calculating the base monthly payments ……………………………………………….. depreciation and any amortized amounts.
the lease payment, which is typically paid monthly, consists of a vehicle depreciation fee, a finance fee which is similar to the interest charged on a car loan, and any relevant sales taxes. if the leased vehicle is returned with excessive interior wear, large dents or scratches, or any significant mechanical damage, the lessor may choose to bill the lessee for the necessary repairs. using a vehicle leasing agreement will help to protect the interests of both the lessor and the lessee as documenting the terms of the lease will help to avoid any misunderstanding or miscommunication between the two parties.
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