Question

Which is not an additional charge when leasing an automobile?

A)Residual value

B)Early termination fee

C)Disposition fee

D)Acquisition fee

Answer 1

Solution:-

ANS:- A) Residual value

Explanations:-

A) Residual value is the amount at which we can buy the leased asset at the end of period. It is not a charge.

B)Early termination fee:- This is the fee charged is the lease is terminated early.

c) Disposition fee:-This is the fee charged by leasing company for expenses related to disposing of the leased asset.

D)Acquisition fee:- It is the amount that the leasing company charge for setting up the lease.

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