Choose the one word or phrase that best completes the sentence and fill in the appropriate answer above.
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.
A -
concept
B -
design
C -
image
D -
observation
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.
A -
remnant
B -
reserve
C -
residual
D -
retained
3-
Generally, European and Japanese automobile ......... have lower depreciation than American brands.
A -
cars
B -
logos
C -
makes
D -
trademarks
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.
A -
Sales
B -
Standard
C -
Stated
D -
Suggested
5-
When you and your dealer sit down and agree on a lease price for a car, this becomes the ......... cost, or "cap cost".
A -
capitalized
B -
car and package
C -
cash projected
D -
contract approved
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.
A -
down
B -
first
C -
key
D -
prior
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.
A -
binding over
B -
nailing down
C -
running through
D -
tying up
8-
This interest is expressed as a money factor, sometimes called lease factor, and is specified as a small ......... number such as.00297.
A -
decimal
B -
denominator
C -
percentile
D -
unrounded
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.
A -
calculation
B -
law
C -
measure
D -
thumb
10-
However, you may not qualify for great money factors unless if you have ......... credit rating.