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Rev. 4/11 VEHICLE LEASE AGREEMENT This lease, made and entered into this day of , 20 , between , hereinafter referred to as Lessor , and , hereinafter referred to as Lessee. This agreement is a subcontract
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Welcome to my how to read and understand a car lease agreement series I put this together to try to help everyone understand this document it is pretty confusing and it took me a while to fully comprehend everything going on in here so I want to try to help you guys understand the different costs and fees and how the lease actually works for these cars so this is the first video in the series and this document is basically not not given to you right off the bat when you're negotiating for a lease car they're going to offer you some kind of mileage and term like 12,000 miles for three years and then a monthly payment of whatever three hundred and sixty dollars with X amount down and what happens is that you say well I can't afford that much monthly payment let's say they started at $400 and I can only afford three hundred and fifty dollars a month and then they come back they're you know okay well if you can put down $500 and you can extend it to four years twelve thousand miles we can do three hundred and fifty a month so the real question is how did they come up with those numbers and where did it come from so this series will try to help you understand the numbers and what the dealer is doing behind the scenes so this is the entire document you can and it's pretty long it has 14 sections and today we're going to talk about number one and number five so number one box number one this is how much we actually ended up paying to the dealer to take the car and our cost was seventeen hundred seventeen fifty breakdown and section number five it breaks 1750 down first of all by taking out your first monthly payment now some dealers will take out our pay for that first monthly payment on our own and you may not have to in this case it actually it isn't and we ended up having to pay that on our own in addition we have a title fee and a registration fee and taxes on these fees and the remaining balance in 1750 goes to the real cost of the car however we do have to pay taxes on that on that down payment so if we take the 1750 and break this down take out the car payment title license taxes we end up with thirteen seventeen eighty one so this is how much money he's going to go towards the cost of the car however taxes need to be paid on the down payment and North Carolina this is three percent if you're in a different state and the tax rate may be higher you would just change the three to whatever your tax rate is a or seven to five anything like that so when we take taxes out of it we end up with that 1279 forty-three that you see here and that then gets completely added or I guess reduced I into the cost of the car and Section six which we'll talk about in the next video now section b of box five this is where you might see any trade-in you may get and this could lower the amount of cash you actually have to pay you can see here the different light items you have paid in cash you have a rebate credit card which actually in north carolina we can't use...