What is Depreciation?
Depreciation represents the largest component of your lease payment. In a lease, you repay the portion of the purchase price that represents the vehicle's decline in value, or depreciation, over the lease term. In addition to the depreciation, you must also repay any other items you rolled into your lease, such as acquisition fees, negative equity on a trade-in and after-market products (e.g., extended warranties). Together, these items represent the balance to be repaid over the lease term. |
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