Free CTFA Exam Braindumps (page: 55)

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Open-end lease is:

  1. An automobile lease under which the estimated actual value of the car is used to determine lease payments
  2. If the car is worth less than this value at the end of the lease, the lessee must pay the difference
  3. If the car is worth less than this value at the end of the lease, the lesser must pay the difference
  4. An automobile lease under which the estimated residual value of the car is used to determine lease payments

Answer(s): B,D



A commonly cited benefit of leasing is absence of down payment. However, today most leases require a "capital cost reduction" which is the down payment that lowers the potential depreciation and therefore your monthly lease payments. You may be able to negotiate a lower capital cost reduction or find a lease that doesn't require one. The lease payment calculation is based on four variables. Which one of the following:

  1. Capitalized cost
  2. Forecast residual value
  3. Money factor
  4. Lease date

Answer(s): D



A good lease contract should clearly define what is considered unreasonable. In addition, most leases requires the lessee to pay a disposition fee:

  1. Of about $50 to $250 when the car is returned
  2. Of about $200 to $250 when the car is returned
  3. Of about $150 to $250 when the car is returned
  4. Of about $1500 to $250 when the car is returned

Answer(s): C



Most auto leases include a purchase option. The annual mileage allowance is another consideration of lease term. Mileage allowance typically about:

  1. 10, 000 to 25, 000
  2. 10, 000 to 15, 000
  3. 10, 000 to 20, 000
  4. 7, 000 to 10, 000

Answer(s): B



Page 55 of 113



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JUAN commented on June 28, 2023
aba questions to practice
UNITED STATES
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JUAN commented on June 28, 2023
aba questions to practice
UNITED STATES
upvote

Alo commented on November 12, 2018
we shall see, just downloaded. Will report back
Anonymous
upvote