Assume that you have taken a car on a closed-end lease for a period of 5 years. At the end of the fifth year, you would need to pay additional money only when:
A)fuel costs have been higher than expected.
B)the residual value is more than expected.
C)the mileage limits are exceeded.
D)the company upgrades the automobile.
E)the driver does not have automobile insurance.

Question

Quizplus · Accepted Answer

At the end of a closed-end lease, additional money may be required if the mileage limits set in the lease agreement are exceeded. This is because the lease terms typically include a maximum number of miles the car can be driven without incurring extra charges. Exceeding these limits can result in additional fees.

Assume That You Have Taken a Car on a Closed-End