4
QuizMultiple Choice

Leasing vs. Buying a Car — Quiz

Question 4 • Personal Finance

Jennifer is looking to lease a car. Bob’s Auto has a car available with a money factor of 0.00344 AAA Auto has the exact same car available with a money factor of 0.00313 Which of these statements is true?

Answer
A
The higher money factor with AAA Auto will give Jennifer the lowest monthly payment.
B
The lower money factor with Bob’s Auto will give Jennifer the lowest monthly payment.
C
The higher money factor with Bob’s Auto will give Jennifer the lowest monthly payment.
D
The lower money factor with AAA Auto will give Jennifer the lowest monthly payment.

Explanation

A lower money factor generally means a lower finance charge in a car lease, which helps reduce the monthly payment. AAA Auto’s money factor is 0.00313, lower than Bob’s Auto’s 0.00344, so the lower money factor with AAA Auto will give Jennifer the lowest monthly payment.

AI-written and checked against the verified answer.

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