"Capitalized cost" defined
Sec. 2. (a) As used in this chapter, "capitalized cost" means the
amount that, after deducting any capitalized cost reduction, serves as
the basis for determining the base lease payment, which is the part of
the periodic lease payment that is the sum of:
(1) the average periodic lease charge; and
(2) the average periodic depreciation.
(b) For a single payment lease, the base lease payment is the sum
of:
(1) the average periodic lease charge multiplied by the number
of months in the term of the lease; and
(2) the average periodic depreciation multiplied by the number
of months in the term of the lease.
(c) The capitalized cost may include any of the following:
(1) Taxes.
(2) Registration fees.
(3) License fees.
(4) Insurance charges.
(5) Charges for guaranteed auto protection or GAP coverage.
(6) Charges for service contracts and extended warranties.
(7) Fees and charges for accessories and for installing
accessories.
(8) Charges for delivery, service, and repair.
(9) Administrative fees, acquisition fees, and all fees or charges
for providing services incidental to the lease agreement.
(10) The unpaid balance of an amount financed under an
outstanding motor vehicle loan agreement or motor vehicle
retail installment contract with respect to a motor vehicle used
as a trade-in vehicle.
(11) The unpaid part of the early termination obligation under
an outstanding lease agreement.
(12) The first periodic payment due at the inception of the lease
agreement, if not otherwise paid by the retail lessee.
As added by P.L.86-1996, SEC.8.
Last modified: May 27, 2006