9
QuizMultiple Choice

Buying vs Leasing a Car — Quiz

Question 9 • Financial Algebra/Mathematics

Which option does a lessee typically have after the end of a lease term?

Answer
A
transfer the lease to another vehicle of a different model with no additional fees
B
lease a new car from the same dealer
C
buy the car for its residual value
D
extend the lease indefinitely with no additional costs

Explanation

At the end of a car lease, the lessee typically may return the car or purchase it for its predetermined residual value. The residual value is the estimated worth of the car at the end of the lease, as stated in the lease agreement. Therefore, the correct choice is “buy the car for its residual value.”

AI-written and checked against the verified answer.

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