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CTFA · Question #192

CTFA Question #192: Real Exam Question with Answer & Explanation

The correct answer is B. If the car is worth less than this value at the end of the lease, the lessee must pay the difference D. An automobile lease under which the estimated residual value of the car is used to determine. See the full explanation below for the reasoning.

Question

Open-end lease is:

Options

  • AAn automobile lease under which the estimated actual value of the car is used to determine lease
  • BIf the car is worth less than this value at the end of the lease, the lessee must pay the difference
  • CIf the car is worth less than this value at the end of the lease, the lesser must pay the difference
  • DAn automobile lease under which the estimated residual value of the car is used to determine

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