Lease vs Buy a Car Quiz 4 questions

Test what you learned: Lease vs Buy a Car key terms

4 quick questions on the terms from the Lease vs Buy a Car calculator. Answer one at a time, then see your full results at the end.

Question 1 of 4

A "money factor" is...

The total amount of money you'll pay over the full lease term A credit-score-based multiplier that determines lease eligibility How lease "interest" is expressed — multiply by 2,400 to get an equivalent APR The dealer's profit margin built into the lease price

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The money factor is how lease interest is expressed; multiplying it by 2,400 converts it into a familiar APR figure.

Question 2 of 4

"Residual value" means...

The amount still owed on the lease after the first year What a leased car is predicted to be worth at the end of the lease term The trade-in value of your previous vehicle The car's original sticker price before any discounts

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Residual value is what the car is predicted to be worth at lease-end — it's set upfront and directly affects your monthly payment.

Question 3 of 4

"Depreciation" describes...

The annual increase in a car's insurance premium A tax deduction available for business-use vehicles The cost of routine maintenance over a car's lifetime How much a car's value drops over time, usually fastest in the first year

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Depreciation is the drop in a vehicle's value over time, with the steepest decline typically happening in year one.

Question 4 of 4

"Cap cost reduction" is...

A fee charged when you return a leased car early The maximum amount a dealer can charge above MSRP Leasing's version of a down payment — money paid upfront to lower the monthly payment A discount applied only to fleet or corporate leases

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Cap cost reduction is leasing's version of a down payment — upfront money that lowers your monthly lease payment.

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This quiz is a learning aid, not a certification or formal assessment. GetRealTerms provides general estimates for informational purposes only — nothing here is tax or financial advice.