When shopping for a lease,you want a
A) high capitalized cost
B) low capitalize cost
C) high money factor
D) low residual value
E) a and d

Question

Quizplus · Accepted Answer

When shopping for a lease, a low capitalized cost is ideal. This is because the capitalized cost is essentially the price of the car, and the lower the price, the lower your monthly lease payments will be.

Answer: E
 A high residual value means that the car will hold its value well over time, which is good for a lease, as it means lower monthly payments. However, a high capitalized cost is not ideal, so the best combination would be a low capitalized cost and a high residual value.

When Shopping for a Lease,you Want a