Interest rate – a variable interest rate, assuming that it will not change throughout the duration of the Agreement.
Residual value – with operating leasing the value of the car at which the seller agrees to repurchase it at the end of the term of the agreement. An agreement for the terms of repurchase is signed with the seller.
Annual interest rate (AIR) – the total costs of the loan expressed as a percentage of the loan principal granted to you.

Say, you are getting a lease on a car priced at EUR 20,000 and you pay the car seller a down payment of EUR 4,000. In this case the loan available from the leasing company would be EUR 16,000. The total amount payable by the consumer (total cost including interest over the lease period, the agreement fee and the account maintenance fee) would be EUR 17110,65 . The amount was calculated assuming that the lease period is 5 years and the variable interest annual rate is 2,10%. The annual percentage rate of charge would be 2,75%.