Car lease contracts are full of words and phrases that may not be familiar to you. Whether you are considering leasing a new car or buying your current leased vehicle, it is important that you understand the terms of your lease contract.

Under a car lease, a lessee does not have any ownership of his/her leased car. Lessees simply pay for the right to drive a car owned by his/her leasing company. For this reason, most car lease car agreements stipulate the kind of condition the leasing company expects the car to be in once the lease ends and the car is returned.