Chapter 6-6: Lease a Car

A term that describes an alternative to car buying where monthly payments are paid for a specific period of time, after which the vehicle is returned to the dealership or bought, is:

• car financing
• car ownership
• car maintenance
• car leasing

It is important to comparison shop when purchasing a car. What does comparison shop mean?

• Always buy from a local dealership

• Take several photos to use for comparison

• Compare the true market value of every vehicle

• Compare the price & quality from different car dealerships

One of the first steps in shopping for a vehicle is to create a(n)

• Budget

• List of wants

• Insurance claim

• Email account

Residual Value represents the

• price of the vehicle at the start of a lease agreement

• price of the vehicle at the end of a lease agreement

• damage done to a vehicle of a lease agreement

• maintenance to a vehicle of a lease agreement

The number of days you should have your house payment and your vehicle payment be paid by:

• 1 day

• 5 days

• 10 days

• 14 days

Sara wants to buy a car priced at $57,000. She will need to make a down payment of 5% and estimates closing costs of 2.8% of the purchase price. What amount will Sara need for the down payment?

• $56,950.00

• $2,850.00

• $1,876.00

• $65,124.00

Hugo had a 4-year lease cost of $332 a month and allowed him to drive 12,000 miles a year. He bought 3,000 extra miles each year for an additional charge of 7 cents a mile. Lease processing fees and a down payment totaled $418.

What was the four-year cost of the lease?

• $16,776

• $15,936

• $16,194

• $17,194

Andrea had a two-year car lease with $528 monthly payments. Her lease had a mileage limit of 12,000 miles a year and charged 20 cents a mile for each mile over the limit. Her total mileage for the two years was 30,850 miles. What was the total cost of the lease over its term?

• $13,302

• $14,042

• $528

• $24,000

Austin purchased a SUV for a delivered price of $77,340 with a 10% down payment and 3 year payments of $745.74. The vehicle may also be leased for $433.67 a month for 36 months. A down payment of $1,100 is required, and the SUV residual value will be worth $14,200 at the end of the lease.

What is the difference between leasing or buying the SUV? Which costs more?

• Buying costs more - $34,580.64

• Buying costs more - $3,0912.12

• Leasing costs more - $1,331.48

• Leasing costs more - $30,912.12

When the salesman presents the two offers to either buy or lease your vehicle to you, what is your next negotiation strategy?

• Accept the highest offer

• Accept the lowest offer

• Ask for a beverage to drink so you can think about offer

• Calculate the MSRP