DMV Exam Vocabulary Terms

Special lease

Also referred to as a 'subsidized lease' or 'subvented lease.' A form of 'incentive and rebate' that consists of a vehicle lease offered by a vehicle manufacturer in which the amount of the monthly payment is reduced below that then offered by independent leasing companies (the cost of which is absorbed by the manufacturer). Typically this is accomplished by using a higher residual value or a lower interest rate, or both.

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