Auto Leasing: TOEIC Practice Test Questions & Answers

Auto Leasing TOEIC Questions Answers English Eduhyme

The TOEIC (Test of English for International Communication) is an English language proficiency test designed to assess the English language skills of non-native speakers in a business or professional context. The test is widely used by organizations around the world to evaluate the English language skills of job candidates, employees, and students.

The TOEIC test consists of two parts: the TOEIC Listening and Reading Test and the TOEIC Speaking and Writing Test. The TOEIC Listening and Reading Test is a paper-and-pencil test that consists of multiple-choice questions, while the TOEIC Speaking and Writing Test is a computer-based test that consists of spoken and written responses to prompts.

The test is designed to measure a wide range of English language skills, including listening comprehension, reading comprehension, speaking ability, and writing ability. Overall, the TOEIC is a widely recognized and respected English language proficiency test that is used by organizations around the world to evaluate the English language skills of non-native speakers.

Q&A Topic: Auto Leasing

Auto leasing is a type of financing arrangement in which an individual or business rents a vehicle for a specified period of time, typically 2 to 4 years, in exchange for regular payments. The lessor (typically a financial institution or car dealership) retains ownership of the vehicle and is responsible for its maintenance and disposal at the end of the lease term.

The lessee (the individual or business using the vehicle) is responsible for paying the agreed-upon lease payments, as well as any fees, taxes, and insurance costs associated with the vehicle. At the end of the lease term, the lessee can choose to buy the vehicle, return it to the lessor, or enter into a new lease agreement for another vehicle.

Auto leasing allows individuals or businesses to drive a newer vehicle without the upfront costs and long-term commitment associated with purchasing a vehicle outright.

Here are some questions that can help you to clear the TOEIC exam:

Q1 author Al Hearn explains that automobile leasing is based entirely on the _____________ that you pay for the amount by which a vehicle’s value depreciates during the time you’re driving it.

(a) concept
(b) design
(c) image
(d) observation

Answer: (a) concept

Q2 Depreciation is the difference between a vehicle’s original value and its value at lease-end (_____________ value), and is the primary factor that determines the cost of leasing.

(a) remnant
(b) reserve
(c) residual
(d) retained

Answer: (c) residual

Q3 Generally, European and Japanese automobile _____________ have lower depreciation than American brands.

(a) cars
(b) logos
(c) makes
(d) trademarks

Answer: (c) makes

Q4 Manufacturer’s _____________ Retail Price (MSRP) is the full price for a vehicle as displayed on its window sticker, including optional packages and destination charges.

(a) sales
(b) standard
(c) stated
(d) suggested

Answer: (d) Suggested

Q5 When you and your dealer sit down and agree on a lease price for a car, this becomes the _____________ cost, or “cap cost”.

(a) capitalized
(b) car and package
(c) cash projected
(d) contract approved

Answer: (a) capitalized

Q6 Cap cost can be reduced by rebates, factory-to-dealer incentives, trade-in credit, or a cash _____________ payment; these are known as cap cost reductions.

(a) down
(b) first
(c) key
(d) prior

Answer: (a) down

Q7 When you lease, you’re _____________ 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.

(a) binding over
(b) nailing down
(c) running through
(d) tying up

Answer: (d) tying up

Q8 This interest is expressed as a money factor, sometimes called lease factor, and is specified as a small _____________ number such as.00297.

(a) decimal
(b) denominator
(c) percentile
(d) unrounded

Answer: (a) decimal

Q9 A good rule of _____________: Lease money factors, converted to an annual interest rate, should be comparable to, if not lower than local new-car loan interest rates.

(a) calculation
(b) law
(c) measure
(d) thumb

Answer: (d) thumb

Q10 However, you may not qualify for great money factors unless if you have _____________ credit rating.

(a) a guaranteed
(b) a relevant
(c) a spotless
(d) an unremarkable

Answer: (c) a spotless

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