HomeMy WebLinkAbout2002-09-23 City Council (3)City of Polo Alto
C ty Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE:
SUBJECT:
SEPTEMBER 23, 2002 CMR:387:02
APPROVAL. OF A CLOSED END MOTOR VEHICLE LEASE
AGREEMENT IN THE AMOUNT OF $126,311 WITH SAN
FRANCISCO TOYOTA FOR THE LEASE OF FIVE TOYOTA RAV-
4 ELECTRIC VEHICLES
RECOMMENDATION
Staff recommends that Council:
1.Approve the attached Closed End Motor Vehicle Lease Agreement for the lease of
five Toyota RAV-4 EV electric vehicles; and
2. Authorize its execution by the City Manager or his designee.
DISCUSSION
Equipment Management has identified five existing gasoline-fueled vehicles that could
be replaced with electric vehicles (EVs): Four of these vehicles are assigned to Utilities
Customer Selwice; one is assigned to Public WOrks Operations. All of the vehicles to be
replaced are 10-12 year old compact pickup trucks. After discussions with Equipment
Management staff and demonstrations of the City’s existing EV’s, staff determined that
the Toyota RAV-4 EV would best meet the City’s needs.
Currently, the RAV-4 EV is only available through Toyota Motor Sales via authorized
Toyota dealers. The authorized dealer closest to Palo Alto is San.Francisco Toyota.
Equipment Management staff recommend that the City lease, rather than purchase these
vehicles, due to the. volatility of the battery-EV market, the exorbitant cost of replacement
battery packs, and concerns about future availability of battery-EV’s,: The cost of a 36-
month, "one-pay" lease is $25,262 per vehicle. "One-pay" means that the total cost of
the lease is paid upon deli-very of the vehicle. The leases can also be paid through
monthly or annual installment payments; however, the total cost will be higher, due to
interest charges. The lease price-is set by Toyota Motor Sales, and is not negotiable
through a bid process. The California Air Resources Board (CARB) offers a Zero
Emission Vehicle Implementation Program (ZIP) rebate of $9,000 per vehicle, making
the net cost of the lease $16,262 per vehicle, if, at the end of the lease term, it is decided
to keep the vehicles, they may be purchased for an additional $26,815 per vehicle.
CMR:387:02 Page 1 of 4
RESOURCE IMPACT
The decision to acquire EV’s is not based on economic factors. Other issues that must be
considered include: decreasing the City’s dependency on non-domestic fuel sources,
opportunities for reducing vehicle exhaust emissions, public perception, and compliance
with Federal AFV acquisition requirements.
The total cost of the lease agreeme~at, $126,311, is the sum of the cost of five individual
leases ($25,262.28 x 5 = $126,311). This is the amount that will be paid to San Francisco
Toyota. After the vehicles are delivered, Equipment Management staff will apply for a
CARB ZIP rebate in the amount of $45,000. After the rebate, the net cost to the City for
leasing the five vehicles for three years will be $81,311.
Even With the rebate, the total ownership cost of the RAV-4 EV is substantially higher
than that of a comparable gasoline-fueled vehicle (regardless of whether the City
purchases the vehicles or returns them at the end of the lease). Table 1 compares the cost
of the RAV-4 to that of a Ford Ranger compact pickup truck over the life of the lease:
Table 1 - Cost comparison over the life of the lease (three ~ears)
Toyota RAV-4 EV Ford Ranger
~16,262 4,8001
630 1,350
1,725 1,860
$18,617 $8,010
Pro-rated; based on $18,000 purchase cost, $2,000 residual value, typical ten-year life
Based on 5,000 miles of annual usage
Vehicle
Purchase/lease cost
Fuel cost 2
Maintenance cost 3
Total cost for three years
1
2
3 Includes two preventive maintenance inspections per year, and a $250 annual allowance for minor repairs and
transportation.
If the City decides to purchase the RAV-4’s at the end of the lease period, the cost of
ownership (compared to the gasoline vehicle) increases dramatically (see Table 2):
Table 2 - Cost comparison over a typical ten-year life
Vehicle Toyota RAV-4 EV Ford Ranger
Purchase cost 1 41,077 16,000
Fuel cost 2 2,100 4,500
Maintenance cost 3 6,900 8,100
Total cost for ten years $50,077 $28,600
1 Purchase cost less $2,000 residual value
2.t~ased on 5,000 miles of annual usage
CMR:387:02 Page 2 of 4
3 Includes two preventive maintenance inspections per year, one set of tires, one complete brake reline, and a $250
annual allowance for minor repairs and transportation. Does not include battery replacement for RAV-4 EV (may
or may not be required during the life of the vehicle; estimated at $15,000 - $20,000).
EV fuel costs ave~rage $0.042 per mile (42 kilowatt-hours of electricity per charge @
$0.05 per kilowatt-hour, divided by 50 miles per charge). The average fuel cost for a
gasoline vehicle in the same application is $0.09 per mile. EV’s still require regular
preventive mai_ntenance, as well as tire replacements and brake service. However, the
cost for engine-related service, such as oil changes, will be eliminated.
The Utilities Department provided initial funding to demonstrate EV’s in the City’s fleet
through its Electric Public Benefits Program, supplemented with grants from the Bay
Area Air Quality Management District and the Congestion Management Authority. In
FY 2000-01, the Public Benefits Program ceased funding the acquisition of EV’s for the
City fleet. This was a result of the successful completion of the demonstrations, and the
City’s desire to continue increasing the number of alternatively fueled vehicles in the
fleet.
Public Benefit resources were re-directed to provide expert consulting support to the
Transportation Division (through a $50,000 contract with EPRI-Solutions) for evaluation
of electric and hybrid options for the shuttle service and general support of public
alternative-fuel applications. The Public Benefits program will also fund the design and
construction of EV charging stations in the two new public garages.
Given this shift of resources, Equipment Management has agreed to fund and manage all
future EV acquisitions. Sufficient funding is available in the 2002-03 Vehicle
Replacement budget allocation to cover the cost of the leases.
POLICY IMPLICATIONS
Tlais recommendation is consistent with existing City policies, including the Council-
adopted policy on sustainability.
The City’s Comprehensive Plan, and Policy and Procedures Section 4-1 require that
Equipment Management purchase low-emissions and alternatively-fueled vehicles
(AFV’s) whenever possible.
This recommendation also supports Comprehensive Plan Policy N-26 (Federal Energy
Policy Act of 1992) and Program N-40.
ENVIRONMENTAL REVIEW
This project is exempt from the provisions of the California Environmental Quality Act
(CEQA) pursuant to Section 15308 (Action by Regulatory Agencies for Protection of the
Environment) of the CEQA guidelines.
CMR:387:02 Page 3 of 4
ATTACHMENT
¯ Attachment A: Toyota Financial Services Closed End Motor Vehicle Lease Agreement
PREPARED BY: Keith La Haie, Fleet Manager, Public Works
DEPARTMENT HEAD:~ , .
GLENN S. ROBERTS
Director of Public Works
CITY MANAGER APPROVAL:
HARRISON
Assistant City Manager
CMR:387:02 Page 4 of 4
CALiFOrNiA
1. Parties ¯
LESSOR (DEALER) NAME AND ADDRESS
Lease Date
VEHICLE GARAGING ADDRESS, IF DIFFERENT
THAN LESSEE’S BILLING ADDRESS
" Year Make
Body Sty.e
Model
OdometerVehicle Identification No. and License Plate N0.Mileage
~k’J!/~or
Descrl ,lon~/~"p "other Property Traded-In
The above Vehicle or Property is being traded in today. The Agreed Upon Value of this Vehicle Or Property is $ }J/~!~... You agree to pay Lessor (Dealer)any deficiency between the payoff used to calculate the amount in 8a or 13b and the actual payoff.
The box below memorializes trade-in, tum-in and other individualized.agreements between you and the Lessor (Dealer). Obligations set forth in this box shall be by the
Lessor (Dealer), not by TLT. If this box conflicts with any’other section of this Lease., the other section of this Lease shall control.
Primaw Use
[]Personal, Fam y
or Household
[]Business, Agricultural¯or Commercial
Amount Due at Lease Signingor Delivery:
a. Capitalized Cost Reduction
b. Total Lease Payment
c. Refundable Security Deposit
d. Title Fees
e. RegiStration Fees’
fl License Fees
g. Taxes
h. Service Contract
i. Maintenance Agreement
j.. :D~curnent Preparation Fee (Not a Go~ernrnent Fe~)
k. Acquisition Fee
I. California Tire Fee
m.
q. Total
¯ 3. Amount-Due at 4. Total Lea,se Payment ¯
Lease Signing or " YoU~: Total Lease Payment of, .,. Delivery
(Itemized in Section $ ~-2. ~L~L~.~.~__is due on
below)
2.5
5.. Other Charges (not part of your TotaLease . 6. Total o~ Payments.
Payment) ... ’ (Th~ amount.you will l~ave
paid by the end of the..Disposition fee (ifyou do ¯Lease). ¯not purcl~asethe Vehicle)¯. " :$N/A
8. -How theAmount Due at Lease Signing or Delivery will be Paid:
a. Net Trade-In Allowance $
b. Rebates and Noncash Credits $
c. Amount~o be Paid in Cash $.
New or
¯ Used Year Make Model
LESSEE AND CO-LESSEE NAME ANDLESSEE’S BILLING ADDRESS
CtT ’ o,=
PHONE NUMBER:COUNt:COUNt:
This is ~ Lease for the Vehicle described below. The words "you", "your" and "yours" refer to ~he Lessee and any Co-Lessee. The words .we", "us" and "our"
refer to the.Lessor, and a~er assignmem, the Toyota Lease Trust (’~LT") and any subsequent assignee. Toyota Motor Credit Corporation (’~MCC") will be sewic-
ing this Lease on behalf of TLT. By signing this Lease, you are leasing this Vehicle ~ccording to all of the terms of this Lease.
2. Description of Leased Vehicle, Tradmin Vehicle and Trade=in Agreements
You are leasing, from us, and received in satisfacto~ condition, the following Vehicle:
"’ Upon Value ofthe Vehicle ($ ~""~q’~ ~ )
and any items you pay in the Total LeasePayment
- (such as any outstanding pdor credit or
lease l~alan~e). For an itemizati0n of this . .
amount, see Section 13 ....$
b.Capitaiized Cost Re~luction. There is no .
Capitalized Cost Reduction in }his Leas#,- $
c. Adjusted Capitalized Cost. The ~ount used
¯ " .in c~lculating ~our Total Leas~ .Payment: . = $
d. Residual Value. The value of the Vehicle
at the end of the Lease used in calculating "
yourTotal Lease Payment..- $
e. Dep~eciati0n ah~l any Amo.rtized Amou~ntS.
The amount charged:for the Veflicle’s decline
in value-through normal use and for Other
items paid for in the Total Lease Payment. "=. $
f. Rent Charge. The amount charged !n addition
. to the Deprec!ation and any Amortized
~Amounts. "r
ig" Total Lease Payment. The Deprec!ation and
any Amortized Amounts plus the Rent Charge. " $
Lease Payments. The numDer of payments inyour Lease.
Early Termination. You may have to pay a substantial charge if you end this Lease early..The charge may be up to several thousanddoilam. The
actual charge Will depend on.when the LeaSe is terminated. The earlier you endthe Lease, the greater this charge is likely to be.
0. Excessive Wea~ and Use...You may be’ charge~l for excessive wear. based, on ou( staridards for normal use and for mileage in. excess of
~ ~ b O O miles per year at.the ~ate of- fifteen (~5) cents per mime.. - " . "
1-1. -Purchase Option at End of Lease Term. You l~ave an ~ption t0 purchase the Vehicle at.the endof the L~ase Term ~or $
¯ 12. Other important Terms. See your Lease documents for additional inf0rmation.on early terminationl purchase 0ptions.and maintenance respon-
sibitities~ warranties, late and default charges; insurance~ and any se.curity ioterest, if applicable.
17. Warranty - . "Itemization of Gross Capitalized Cost If the Vehicle is new, the Vehicle is subject to .the standard new warranty
14.
15.
You will pay. for the following items over the Lease Term, as part of your
Total Lease PaYment: "
a.l.Agreed Upon Value of the Vehicle as
equipped at time of signing the lease " - $../J¢~..~ ~. ~
a,2. ’Agreed Upon Value of each accessory and item of optional
equipment the Lessor (Dealer)agrees to add to the vehicle after
signing the lease: ~ ¯
iv.
Total Agreed Upon Value of the Vehicle
Outstanding Prior Credit or Lease Balance
Gross Co t
Lease Term and Scheduled Maturity Date
The Lease Term of this Lease is ~..
¯ Scheduled Maturity-Date of this.Lease is
months and the
Required insurance
You must pr6vide the following insurance dudng the Lease Term with the
Lessee and/or Co-Lessee as an insured ddver. No other types of insurance
are required:
¯ a) pdmary automobile liability insurance with minimum limits for bodily
injury or death of
i)$..:for any one person, and
ii)$. for any one accider{t, and
iii).$" forproperty damage; and
b) physical damage insurance for.the full value ~3f the Vehicle, With a max[
mum deductible of $10000.
See Section 24 for additional information..
You have provided us today with the following Insurance information:
Insurance Provider Pc!ic No.Insurance Coverage Verification
By: Dealer Employee
Agenfs Name / Address Agenfs Phone No.
Estimated Official Fees and Taxes $
This is an estimate of the total amount you will pay over the Lease Term
for official and license fees, registration, title, andtaxes (including personalproperty taxes), whether included in the Amount Due at Lease S~gning or.
Delivery (Section 7) or billed separately. The actua total of Official Fees
and Taxes may be higherl or lowerthan this estimate depehding on the tax’ "
rates in effect or the value of. the Vehicle at thetime a-fee or tax is
assessed. This estimate is based on your current address ahd mayincrease if you move or if ta~ rates, change. You are responsible for
paying any increases. See Section 27 for additional, information.
from the manufacturer. If the Vehicle is used~ it is not coveredby a.warranty
unless identified below:.
1-] Remainde~ of standard new vehi.clewa~ranty from mant~facturer
[] Used vehidle Warranty from manufacturer
YOU ARE .LEASING ’THIS VEHICLE "AS IS." WE MAKE NO WAR-
RANTIES AS TO THE VEHICLE’S CONDITION, MERCHANTABILITY,SUITABILITY,.OR FITNESS FOR A PARTICULAR PURPOSE. ...
OptionalInsurance.and Other Products
You are not required.to buy any of the oplional insurance or othe~ products list-
e.d be ow to enter into this-Lease, and they are not a factor n our credit.deci-
sion. These insuranceand other products.will not be provided unless the
appropriate box is checked, all informationis filled in, you initiaJ below, and you
are accepted by the Provider. By your initials below, you agi’Oe that you havereceived a notice o~ the terms of ~e insurance or product, and you want to
obtain the insurance or product for the premium or charge shown. A podion of
the premium or charge shown may be retained .by the Lessor (Dealer).
GAP LIABILITY NOTICE: In the event of theft or damage-to the vehicle
that results in a total loss, there may be a GAP between the amount
due upon early termination and the proceeds of your insurance settle-
ment and deductible. THIS LEASE PROVIDES THAT YOU ARE LIABLE¯ FOR THE GAP AMOUNT. Optional coverage for the .GAP amount may
be offered for an additional price. .
[] Optional Service miles/__ monthsCor~tract Coverage
Provider Premium or Cha~ge Lessee / Co-Lessee Initials
[] Optional’Maintenance Agreement
Provider " Premium or Charge Lessee/C0-Lessee Initials
Total Premiums and Charges
19.
20.
Complete Agreement or Modification
By your initials, you acknowledge that this Lease contains the entire agree-
ment for the Lease of this Vehicle. There are no other agreements. Any
change to this Lease must be in wdting, and Signed by you and.by us.
Lessee ! C0-Lessee InrdalsAgreement to Arbitrate
By initialing below, .you agree th’at at the request, of either.you or us
any controversy or claim (defined in Section 44 of this Lease)
between you and us shag be "determined by neutral binding arbitra-
tion. See Section 44 for further terms and conditions.
L#ssee / C0-Lessee nffials
THERE IS NO COOUNG OFF PERIOD
California law does not provide for a "cooling off" or other cancellation period for vehicle leases. Therefore, you cannot later cancel this Lease simply because
you change your mind, decided the vehicle costs too much, or wish you had acquired a different vehicle. You may cancel this Lease only with the agreement
of the Lessor or for legal cause such as fraud.
By signing below, you acknowledge that: (1) You have read the entire Lease, including the back side; (2) You agree to all of the provisions of this Lease; (3)This is a lease; y~u’ have no ownership interest in thO.Vehicle unless and until you exerFise your option to.purchase set forthin this.Lease.
Notice to the Lessee: (1) Do not sign this Lease before you readit or if it ontains any blank spaces to be filled in; (2) You are entitled to a completely filled in
copy of this Lease; (3) Warning - Unless a charge is included in this Lease for publ c liability or property damage insurance, payment for that coverage is not
- provided by this Lease. " ¯
You acknowledge that you have ~ece~veda ornp~etely filled-in copy of this Lease.
Lessee Signature Co-Lessee Signature
The Lessor hereby accepts this Lease and assigns to the To3)ota Lease Trust all rights, title and interest in the Lease and in the Vehicle, and Less~3r’s rights
under any guaranty executed in connection with this Lease, with full powers to the Toyota [:ease Trust to collect and discharge all obligations related to this
Lease, any guaranty, and this assignment.
California . " PLEASE BEAD THE BACK £ID ~IA! TFBlglR ANI’~ ~l~,lrllT!l~_~ ........ ,,.,,.,
2!. Vehicle Maintenance and Damage
’~You are responsible for all m~intanance, repair, se~vicel ano~operat-
ing expenses of the Vehicle. You agree to follow the owner’s manu-
al and maintenance schedule, and to prov!de us with written proof
Of such maintenance. You are !’esponsible for all damage to the
Vehicle and for its loss, seizure or theft. You must tell us immediately
if. a~y of these events happen, and cooperate with your insurance
company.
22.Prohibited Uses of the Vehicle. You agree that you will not, or per-
mit others to:
a. use the Vehicle in. any illegal manner, .in ~ioiation of your insur-
..ance policy, of without the insurance coverag
Sections 15 and24; . .
b. alter the Vehicle without our written consent. Any accessions, to
the Vehicle become our property;
c. subject.the Vehicle to any lien, seizure or other involuntary
transfer;
¯ " d. use the Vehicle to transport goods or people for hire;
e. remove the Vehicle from the.state where it was first titled, for
more than 30 days, without our written consent;
f. take the Vehicle outside the Continental United States or Alaska
(except to Canada or Mexico fo[ less than 30. days,, if you have
our consent and haveprovided us with proof of insurarice); or
g. allow anyone else to regularly use the Vehic e yv ~hout our written
consent.
Assignment or sub~easing by you of the Vehicle or Lease is
strict!y prohibited.
23.Tit~e and Registration, Legal title to the Vehiclewill be in’ our name
and th# Vehicle w~ll be registered as we di’rec.t. Yo~J must promp!ly
. pay all title,.registratien and ticense fees.
¸25.
29.
30.
Required’insurance. we have tRe right to change the amounts of
Required Insurance shown in Section !5. The limits we require may.
not be sufficient for your needs. See your insurance provide.r formore information. You may obtainthe required coverages through
any insurance .company, agent, or broker you choose. The insur-ance p01icy.must be acceptable to Us, name the Toyota LeaseTrust
as additiona~ insured and!oss payee and give us at least 10 dayswritten notice before anyc.a~ncellation on reduction !n Coverage: You
authorize us to endorse your .name(s) on any check or draft from
. your insurance company for any claim. You must provide us withwri~en proof of this insurance..
Payment Obligations. You may not change or stop paying your.
obligations, under this Lease for any reason, even if’the Vehicle is
stolen, destroyed~ seized by.the government, no.n-operable, experi-
ences any mechanical problem, or does not perform satisfactorily: If
you. do not return the Vehicle by the Sched.uled Maturity Date, you
must pay us monthly the Monthly Payment ¯as defined in Section 30.
However, .acceptance by us Of your paYment.does n.ot.mean, you
have ~ur permission to keep the Vehicle.’
2&Change in Address. You must notify us in writing within 30 days of
any change .in your address.
27, Official Fees, Ta,~es ~nd Fines. You must promptly pay all official
fees and taxes related to this Vehicle and this Lease, including t!tle,
license and registration fees, and sales, use, excise and personal
property taxes. You must also promptly pay any fines incurred on the
Vehicle such as traffic or parking tickets.
Some bills for offic!al fees’ and taxes may be sent to you for pay-
ment. etherbills may be paid by us on your behalf and wewill
charge.you the amount paid. You must pay all fees incurred during
the Lease T~erm, even if they are assessed, and billed after the Lease
¯ has ended. We may charge you an estimated amount for the
remaining fees and taxes at the time this Lease ends. You are
responsible for any shortage in this estimate, and we will refund you
any excess. .
We may PaY any title, registration, license fee, tax or fine which you
fail to pay, and charge you the amount paid. You are responsible for
. any fines or penalties if you fail to pay the bile when due.
28.Default and Loss of the Vehicle. You will-be in default if:
a.. you fail to pay any amount due under this Lease
b. you fail to keep any other agreement in this Lease; or
c. you provided, fa!.se or misleading information when applying for
this Lease; or
.d. .you become the subject of a bankruptcy or insolvency proceed,~ng; or ¯ ¯
e....the Vehicle is lost, stolen, seized, or damaged beyond., reason-
able repair.
If you are in default We may do any of the following after giving any
~egally required notices, and after expiration of any legally required
cure or reinstatement pedods: ¯
i.. terminate this Lease and your right to use the VehiCle;
ii. take possession of the Vehicle from Your property.or elsewhere,
in any manner not prohibited by law;
iii. require you to paythe amounts set forth in Section 30;
iv. pursue any other .remedy allowed by !aw; and
v. require you to pay all of our expenses:for taking these aCt!ens,
including, but net limited to, expenses for repossession, trans-
p0rtation, storage, collection, .and legal costs, including rea-
.sonable attorneys’ fees paid to an attorney who is not our
salaried.employee, as allowed by applicable law.
Earl# Termination by Us. Wemay terminate this Lease at anytime ....31.
if you are in default (see Section 28) and you must pay us the
amounts set forth, in Section 28(v) and Section 30. ’
Early Termination by You. If you are- not in default, you may termi-
nate this Lease at any time. To do so you must return the Vehicle to
us, at a location we specify, and pay us the following amounts (or if
there is an excess, it will be’refunded to you):
a. any amounts due under this Lease,. except charges for Excessive
Wear and Use and excess mileage (Sections 10 and 33); plus
b. any official fees or taxes charged inconnection with the Lease
termination; plus.
c. any out of pocket costs paid by us’ for the sale of the Vehicle~
.including costs for transporting; storing~ preparing for.sale’, and
auctioning the Vehicle; plus .d. an Early Termination Charg6 equ~.l, tO tl~e difference, if any,
¯ between the "Adjusted Lease Balance" and the "Fair Market
Value" (as defined below); lesse. any Refundable Security Deposit (Section 34), or refund we
receive of Optional lnsur~r)ce o_r Other Products (Section 3_6).
The "~dj’usted Lease Balance" is eqi~al.to {he Residual Value
(Section 9d) less the unearned portlon of the Rent Charge. To deter-
Your Option to ’Purchase the Vehic}e. You may.buy.the Vehicle at
¯ any time duri.ng the Lease or at the Scheduled Maturity Date (unless
a¯.govemmental agency has seized the Vehicle and instructed us not
" to release the Vehicle to you).. The price to purchase the Vehicle at
the Scheduled Maturity Date is the Purchase Option Price shown in
Section 11, plus 31a, 31b and 31c below. The price to purchase the¯
Vehicle during the Lease is:
a..any amoa’nts due under this Lease, except charges for Excessive
Wear and Use and excess mileage (SectiOns 10 and 33)~ plus
b. any official.fees and taxes, or documentary fees charged in
connection with the purchase; plus¯c. any amountsnecessary to meet any lega! selling requirements;
plus
.d. theAdjusted’Lease Balance as defined in Section 30.
32.Obligations if You Do Not Purchase the Vehicle at the Scheduled
~aturity Date. At the Scheduled Maturity Date, you must return the
Vehicle to us at the location we specify, and pay us the followiqg
amounts:¯
a. any amounts.due.under this Lease;plus
b. any official fees and taxes, ordoCumentary ~ees charge~ ~n corn.
nection with the Lease termination; plus
mine the unearned portion of the Rent C’hargei first"determine.~. ’~ ’ i i".~: .. any-Excessive Wear and Use charges disclosed in Section 33;
Monthly Rent Charge by dividing the Rent cJ~arg~:(Section.gf) by!": ~’i-~ ~ :. pl~J~ ’ "
the Lease Term (Section 14). The unearned portion of the Rent :..’ " ’ d.’ anyexcess mileage charge disclosed in Section 10..You will not
Charge is the number ot Monthly Payments which would be due
after the date 0ftermination, timesthe Monthly Rent Charge:. To
determine the number of Monthly Payments .due ..after the date .of
termination, assume that a Monthly PaYment (equal to the.Tota
Lease Payment (Section 9g)divided by the Lease Term (Section
14)) v~ould be due on.the Lease Date, and on the same day.of each
subsequent month.
The "Fair Market Value" is equal to the price we receive when we dis-
pose of the Vehicle at wholesale.¯The Fair Market Value may¯ also be
by an appraisal ofthe ’wholesale value of the Vehicle,
which you may obtain, at your own expense; from .a professional
independent appraiser agreed .to by us. If you obtain such an
appraisal the appraised value will beused as the Fair Market Value.
You have up to.threedays ¯be~o~e the scheduled sale of the Vehicle to
obtain such a~n appraisal:
if the. Veh c e is subject to a total loss or theft resulting in a total loss;
the Fair Market Value will equal the amount of any insurance pro-
ceeds we receive from your Required Insurance. If there are no
insurance proceeds, the Fair Market Value will be zero..~
receive a refund if you do not use all of the mileage set forth in
Section 10.
33.Excessive Wear and USe Charges. At the Scheduled Maturity
Date, if you do not purchase the Vehicle, you must pay us the esti-
mated cost’to repair damage to the Vehicle which is excessive wear
and use. Excessive wear and use includes, but is not limited to:
a. inoperative mechanical and electrical parts;
b~. damage(including but not limited to, damage to the engine)
due to your failure to maintain the Vehicle in accordance with
" Section 21;
c. damage to the body, lights, trim or paint;
d. damaged, broken or tinted glass;
e. torn, damaged or stained interior;
.f. damage from flood, water, hail or sand;
g. damage from removal of eq.uipment or signs placed on the
Vehicle;
h. missing equipment, parts and accessories, including missing
keys or remote entry devices;, or
i. tires with less than 3/32 inch of tread remaining,, or any tire not
part of a matching set of 5 tires (or 4 with an emergency spare if
the Vehicle was originally equipped with one).
Refundable SeCurity Deposit. Your security deposit may be used
byus to pay amounts that you owe under this Lease. Any unused
security deposit will be returned.to you at.the end of the Lease
Term. No interest, increase or profits will be paid to y6u on the
security, deposit.
Assignment. We can assign our interest in thisLease and. in the
Vehicle withoutyour consent. After you sign this Lease, we will
assign it to TLT and you agree to make al! payments to TLT.
38.Refund of Optional insurance or Other Products. If any optional
insurance or product included in the Gross Capitalized Cost is can-~
celled before the end" of the Lease Term, or if you are not accepted
by the Provider for a requested optional insurance or product, We will
. credit any refunds to your account.
37. indemnity. You agree to indemnify us. from, and to pay on 0u~"
behalf,, any claim or loss (including damages, costs, expenseS and
legal fees) which arises from or is related to the use, maintenance or
operati6n of the Vehicle. Any insurance we provide is secondary to
the Required Insurance.
Credit information. You authorize us, at any time, to investigate
any information provided on your credit application in order to.
establish,.maintain and collect on this Lease account. You authorize
us to provide .information concerning youraccount to credit report-
ing agencies and others who may lawfully receive such information.
You waive the provisions of Calif. Veh. Code Section 1808.21 andauthorize the California Department of ’Motor Vehicles to furnish
your address to us.
Nonapprovai of Credit Appiicati0n. You have the right to return
the Vehicle, and receive.a refund of.any payments made if the
credit applicatioh is not approved, unless nonapproval results
from an incomplete application or from incorrect informationprovided by you.
Liabi!ity. Lessee and Co-Lessee are jointlyand several!y liable.
.there is both a Lessee and Co-Lessee Signing this Lease, we can
release, waive or delay the enforcement of our rights against one of
you, without affecting our rights as to.the other one.
Notices. All Lessee and Co-Lessee correspondence and notices
will be sen~ to the Lessee’s Billing Address shown on the Lease,
unless you giveus a different address in writing. All correspon-
dences and notices will be given solely, in TMCC’s name, and will
be given on behalf of TLT.
Choice of Law and Severabili.ty. You agree that the !aw of the
state in which this Lease is signed applies to this Lease. If certain
provisions of this Lease violate the law, .those.provisions will be
void, and the rest .0fthe Lease will be enforceable,
No Waiver by Us. if we delay or refrain from exercising our rights
under this Lease, we do not lose those rigl~ts; If we accept late or
partial payments fro.m you, we do not waive ou~ right to receive full
and timely payments.
California 6275CA 01/02