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Determination of Monthly Payment
	A further explanation of each term shown in Exhibit 3 is contained in the Federal Reserve Board's brochure "Keys to Leasing, A Consumer Guide" which can be viewed on the FRB's web site.

Exhibit 3 Determination of Monthly Payment

This section includes five important new disclosure items which are not disclosure items mandated by the Consumer Leasing Act statute: Gross capitalized cost Adjusted capitalized cost Residual value Depreciation and any amortized amounts Rent charge ACVL strongly supported the inclusion of this detailed information in the belief that consumer understanding of leasing will be increased by these disclosures and comparisons between lease offers will be facilitated. Gross Capitalized Cost The gross capitalized cost is the starting point for the calculation of the monthly payment. The descriptor included with the gross capitalized cost is very informative and follows the definition recommended by the leasing industry very closely. It will give consumers a good understanding of the meaning of the term. The "agreed upon value of the vehicle" must be separately disclosed. This should end any confusion over whether the negotiated value of the vehicle has been accurately incorporated in the lease. Although the FRB model form contains a box which the consumer can check to note that they want a further itemization of the gross capitalized cost, most ACVL lessors include this itemization as a standard part of their disclosures.