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.
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
Leasing a car for a five-year period usually costs about the same as a five-year loan because __________.a.five-year leases are considered more risky and come with a higher interest rateb.the longer time period over which to pay the leasing company creates a higher monthly paymentc.if you lease a car for five years, the leasing company transfers it to a sale with the same monthly paymentd.even with the lower monthly payments, leasing a car for five years requires a second lease agreement, which comes with additional fees
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
Henry is at the end of a three-year lease for his car. His leasing company says that his car is currently worth $12,780, a 72% residual value. Determine the original MSRP of Henry’s leased car.a.$9,201.60b.$5,633.80c.$17,750.00d.$45,642.86
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
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 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 the following statements is true?a.The lower money factor with Bob’s Auto will give Jennifer the lowest monthly payment.b.The lower money factor with AAA 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 higher money factor with AAA Auto will give Jennifer the lowest monthly payment.
Determine the money factor for a lease with an interest rate of 9%.a.0.00375b.0.03750c.2.16000d.21.60000
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.”
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