Leasing (Mechanics) Flashcards
1
Q
What happens if the customer goes over the miles in their lease contract?
A
They are charged $0.15 cents a mile
2
Q
T / F
A customer can buy extra miles mid-contract in they think they will go over their allotted mileage.
A
False
3
Q
How are taxes figured on a lease?
A
Your taxes are paid on the vehicle if you decide to buy it in the future for the Guaranteed Future Value (residual)
4
Q
What is another word for Residual?
A
Guaranteed Future Value
5
Q
Define “Residual”
A
(The amount the vehicle is worth at a future point…)
6
Q
T / F
Someone can get out of their lease contract if they sell the vehicle and satisfy the residual or pay it off.
A
True
7
Q
Mileage affects the resale value no matter if you ______
A
How you decide to pay for a car, lease or finance
