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Today's Terms
Residual Value
Definition:
The end-of-term value of the item established at the beginning of the lease and used in calculating your base monthly payment. The residual value is deducted from the adjusted capitalized cost to determine the depreciation and any amortized amounts. It is an estimate that may be determined in part by using residual value guidebooks. The residual value may be higher or lower than the realized value at the scheduled end of the lease.
Collateral
Definition:
Property, such as stocks, bonds or a car, offered to support a loan and subject to seizure if you default.
Billing Error
Definition:
Any mistake in your monthly statement as defined by the Fair Credit Billing Act.
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