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Business English Exercises
 

Auto Leasing

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Home > Teaching Business English > Business English Lessons, Advanced Level # 86
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auto leasing answer 1
LeaseGuide.com author Al Hearn explains that automobile leasing is based entirely on the concept that you pay for the amount by which a vehicle's value depreciates during the time you're driving it.

Correct answer: (a) concept

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auto leasing answer 2
Depreciation is the difference between a vehicle's original value and its value at lease-end (residual value), and is the primary factor that determines the cost of leasing.

Correct answer: (c) residual

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auto leasing answer 3
Generally, European and Japanese automobile makes have lower depreciation than American brands.

Correct answer: (c) makes

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auto leasing answer 4
Manufacturer's Suggested Retail Price (MSRP) is the full price for a vehicle as displayed on its window sticker, including optional packages and destination charges.

Correct answer: (d) Suggested

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auto leasing answer 5
When you and your dealer sit down and agree on a lease price for a car, this becomes the capitalized cost, or "cap cost".

Correct answer: (a) capitalized

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auto leasing answer 6
Cap cost can be reduced by rebates, factory-to-dealer incentives, trade-in credit, or a cash down payment; these are known as cap cost reductions.

Correct answer: (a) down

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auto leasing answer 7
When you lease, you're tying up the leasing company's money while you're driving their car and they rightfully expect you to pay interest on that money, the same as with a loan.

Correct answer: (d) tying up

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auto leasing answer 8
This interest is expressed as a money factor, sometimes called lease factor, and is specified as a small decimal number such as.00297.

Correct answer: (a) decimal

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auto leasing answer 9
A good rule of thumb: Lease money factors, converted to an annual interest rate, should be comparable to, if not lower than local new-car loan interest rates.

Correct answer: (d) thumb

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auto leasing answer 10
However, you may not qualify for great money factors unless if you have a spotless credit rating.

Correct answer: (c) a spotless

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Business English Practice Exercises Business English Tests — several topics are covered: office matters, job applications, computer English, money expressions, business law, operations management, retail marketing, e-commerce, accounting terms, contracts and agreements, commercial correspondence, etc.
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