Question

Given below are lease terms at the local dealership. What is the total cash due at signing?

Terms:
• Length of lease = 24 months
• MSRP of the car = $17,500
• Purchase value of the car after lease = $9,900
• Down payment = $2,400
• Monthly payment = $425
• $375 security deposit
• $500 acquisition fee
a) $3,275
b) $3,700
c) $3,400
d) $375

Answer 1

The total cash due at signing for the lease terms provided is $3,700, which includes the down payment, first month's lease payment, security deposit, and acquisition fee.

Step-by-step explanation:

The total cash due at signing when leasing a vehicle is calculated by adding all the initial fees and payments that are required. These typically include the down payment, the first month's lease payment, a security deposit, and any additional fees such as an acquisition fee. In this case:

• Down payment = $2,400
• First month's lease payment = $425
• Security deposit = $375
• Acquisition fee = $500

Therefore, the total cash due at signing is $2,400 (down payment) + $425 (first month's payment) + $375 (security deposit) + $500 (acquisition fee) = $3,700.