Automobile Leasing Quiz

search

1. What is the best time to negotiate lease price with your dealer?

After you've told them that you're in love with the car and you must have it NOW

After you've done your homework

Didn't know lease prices could be negotiated

2. What is meant by "Cap Cost Reduction?"
		Baseball caps are on sale
		A down payment or trade-in credit that lowers your lease payment amount
		Lower interest rate

3. Why are payments lower in a lease, when compared to a purchase loan?
		The government subsidizes leases, but not loans
		You only pay for the part of the vehicle's value that you use, not the entire value
		Dealers strip equipment off of leased cars

4. Who actually owns a car when it's leased?
		You own it
		The leasing company owns it
		The dealer owns it

5. Since lease payments are lower than loan payments, leasing is always a good deal, right?
		You bet. The car salesman told me this was true.
		Maybe. Leasing is often a good deal, but not always.
		I don't know. It's difficult to tell if it's a good deal or not.

6. Is leasing always better than buying with a loan?
		Yes, always
		No, never
		It depends

7. If you want to end your lease early, you can just return your car to the lease company and walk away. Right?
		Sure, that's right. No problem.
		No, you must follow procedures and pay associated costs to the lease company
		Yes, but the car has to be in good condition and not have excessive miles

8. Is your credit rating important in leasing?
		No, because leasing is like renting
		Yes, even more important than if you were buying
		Yes, but not very important

9. What is "gap coverage" in a lease?
		Pays for dents, scratches, and gaps in vehicle's exterior
		Pays off lease if vehicle is stolen or totaled in an accident
		Pays for rental car while vehicle is being repaired

10. How long do you have to cancel a lease after you sign your contract?
		It can be cancelled at any time. Just return the car and walk away
		You cannot cancel after you've signed and driven away in the vehicle
		Three days, or 72 hours

[ back ] [ home ]