Definition
An initial payment made at the beginning of a car lease agreement. While sometimes referred to as a ‘deposit’, it is not refundable and is essentially another part of the total cost of the lease, used to reduce monthly payments.
Why it matters (in Poovi’s context)
This is a critical component of leasing costs that consumers must understand, as it’s not a refundable deposit but a sunk cost.
Key properties or components
- Paid at commencement of lease
- Reduces monthly payments
- Non-refundable
- Often referred to as a ‘deposit’ misleadingly
Contradictions or debates
None.