Understanding Lease Agreements

What is the primary purpose of the lease document?

• To list the car's previous owners

• To offer a warranty for the car

• To outline the terms and costs associated with leasing a car

• To provide a detailed history of the car

Which section of the lease document provides a quick overview of the total costs?

• The section on end-of-lease details

• The section detailing monthly payments

• The section summarizing all costs

• The section on maintenance responsibilities

What is included in the costs due on the day you sign the lease?

• The total cost of the lease

• The cost of any future repairs

• A detailed list of all initial costs, including down payment and security deposit

• Only the first month's payment

What is the capitalized cost reduction?

• The down payment made at the start of the lease

• The monthly payment amount

• The fee for excess mileage

• The total cost of the lease

How is the monthly payment for a lease primarily determined?

• By the car's color

• By the car's depreciation, interest, and sales tax

• By the car's brand

• By the car's fuel efficiency

What does the depreciation amount in a lease agreement represent?

• The interest rate applied to the lease

• The total cost of the lease

• The decrease in car value over the lease term

• The increase in car value over time

What happens if you exceed the mileage limit in your lease agreement?

• The car is returned to the dealer

• You receive a refund

• The lease is automatically extended

• You are charged a fee per excess mile

What is a disposition fee?

• A fee for exceeding mileage limits

• A fee for car maintenance

• A fee for returning the car at the end of the lease

• A fee for early lease termination

Can you purchase the car at the end of the lease?

• Yes, always

• Only if the car is new

• No, never

• It depends on the lease agreement

What should you focus on to understand the lease document better?

• The car's color

• The top section summarizing costs

• The car's fuel efficiency

• The car's brand