Auto Leasing

Please choose the most appropriate answer for each sentence.
  • 1

    LeaseGuide.com author Al Hearn explains that automobile leasing is based entirely on the ..... that you pay for the amount by which a vehicle's value depreciates during the time you're driving it.

  • 2

    Depreciation is the difference between a vehicle's original value and its value at lease-end (..... value), and is the primary factor that determines the cost of leasing.

  • 3

    Generally, European and Japanese automobile ..... have lower depreciation than American brands.

  • 4

    Manufacturer's ..... Retail Price (MSRP) is the full price for a vehicle as displayed on its window sticker, including optional packages and destination charges.

  • 5

    When you and your dealer sit down and agree on a lease price for a car, this becomes the ..... cost, or "cap cost".

  • 6

    Cap cost can be reduced by rebates, factory-to-dealer incentives, trade-in credit, or a cash ..... payment; these are known as cap cost reductions.

  • 7

    When you lease, you're ..... the leasing company's money while you're driving their car and they rightfully expect you to pay interest on that money, the same as with a loan.

  • 8

    This interest is expressed as a money factor, sometimes called lease factor, and is specified as a small ..... number such as.00297.

  • 9

    A good rule of .....: Lease money factors, converted to an annual interest rate, should be comparable to, if not lower than local new-car loan interest rates.

  • 10

    However, you may not qualify for great money factors unless if you have ..... credit rating.

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