Calculate the monthly lease payment for a 36-month lease on a car with a $29,000 MSRP, a 79% residual value, and a money factor of 0.00365.a.$358.64b.$128.08c.$169.17d.$105.85
Jennifer is leasing a car from a local auto retailer. The terms of the lease include a 9% interest rate for 36 months with a residual value of 57%. The MSRP for the car Jennifer is leasing is $17,500. What will Jennifer’s monthly lease payment be?a.$93.84b.$99.75c.$209.03d.$312.06
Which of the following is not a fee that contributes to the initial cost of leasing a car?a.first paymentb.final paymentc.acquisition feed.disposition fee
Which of the following would be a good argument to buy rather than lease?a.“Money is really tight. I need the lowest possible monthly payment.”b.“It is very important for my image to drive the newest cars available.” c.“I’m only going to need it for a few years before I move back to Great Britain.”d.“I would prefer to walk out of the deal in the end with something to show for the money I put in.”
The depreciation component of a lease payment is _____.a.to compensate the leasing company for the monetary value the car loses during your leaseb.interest you pay on the money the lease company has invested in your car during your leasec.the sum of your first and final lease payments, designed to make driving the car off the lot more affordabled.an additional amount added to the value of the car to say “thank you” to the lease company for their services
Tim needs a new car while he attends college in the United States for the next three years. The car he would like has an MSRP of $15,000. A local dealer can get him a three-year loan with a 7% interest rate if Tim can make a $1,500 down payment. The same dealer offers the same car for lease with a money factor of 0.00271 and a residual value of 75%. The lease requires an additional fee of $1,250 to cover Tim's security deposit and the acquisition and documentation fees for the car. Tim is looking to drive the car home with the smallest monthly payment. Which of the following statements is true?a.The monthly payment for the loan is lower. b.The monthly payment for the lease is lower.c.The monthly payments for the lease and loan are the same. d.You cannot compare the monthly payments for leases and loans.
Cindy would like to lease a car worth $56,000 for a three-year period. The leasing company told Cindy that after three years, the car would have a residual value of $40,320. How much of the car’s original value will Cindy have to pay off during her three-year lease?a.$1,389b.$7,200c.$15,680d.$40,320
If a person wanted to purchase his or her dream car, and keep it for many years, is leasing or buying the better option? Why?a.Buying would be the better option because the overall cost would be less. After the car is paid off, the owner gets much more value from the car, having already paid it off. b.Leasing would be the better option, so the newest model could be driven every few years.c.It wouldn't matter, as long as the person got to drive the dream car. d.Leasing would be the better option because it would allow the person to customize the car and drive it as much as he or she wants.
Sally is near the end of a three year lease on a car with an original MSRP of $38,000. Her leasing company claims that the car is now worth only $28,500. Which percentage represents the residual value of Sally’s leased car?a.25%b.33%c.67%d.75%
Which of the following statements explains the difference between a lease and a loan?a.At the end of a loan the car belongs to you, but at the end of a lease, the car still belongs to the lease company.b.At the end of a loan, the car still belongs to the lease company, but at the end of a lease the car belongs to you.c.A loan requires a large down payment at the beginning while a lease does not.d.A lease requires a large down payment at the beginning while a loan does not.
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