Security Deposit
Definition
- With vehicle leases, it is an amount of money, often the same as one month's payment, held by the dealer to ensure the vehicle is returned in good condition. The security deposit is returned at the end of the lease agreement minus any fees or damage charges. Also called a reconditioning reserve.
Synonyms
down payment, money saved
Acronyms
sec, sec dep
Related Terms and Acronyms
- Amount Due at Lease Signing — Definition,
- The total amount due before the consumer can take delivery of a leased vehicle. It can include any security deposit, title fee, capitalized cost reduction, monthly payments paid at signing and registration fees.
- Disposition Fee — Definition,
- A fee charged by some lessors at the end of a lease where the customer pays for the privilege of returning the vehicle.
- Excess Wear Charge — Definition,
- Most leases set limits for wear and tear on the car during the lease term. The lessee must pay charges for exceeding the limits when turning in the car at the end of the lease.
- Landlord — Definition,
- One who rents or leases his or her property to another person or a business.
- Lease (lse) — Abbreviation,
- A written agreement in which the property owner allows a tenant to use property in exchange for rent, and for a specified period. Or, a written agreement in which a car dealer allows a consumer to use a vehicle in exchange for payments for a specified period.
- Preparation Charges — Definition,
- An additional charge that dealers try to impose on buyers. It represents pure profit for the dealers, who have already been paid by the manufacturer for the cost of preparing the car for sale.
- Rent — Definition,
- When one party pays another for the use of an asset, service or property.
- Up-front Costs — Definition,
- The costs that must be paid at the time of signing a car lease agreement. These can include the first month's payment, a refundable security deposit, a capitalized cost reduction or down payment, taxes, registration and other fees.
