Question

which of the following is not a fee that contributes to the initial cost of leasing a car?
a. first payment
b. final payment
c. acquisition fee
d. disposition fee

please select the best answer from the choices provided

a
b
c
d

Explanation:

Analyze initial leasing costs

Initial costs (due at signing) typically include the first month's payment, acquisition fee, security deposit, and taxes.

Evaluate the given options

• First payment (a) is due at signing.
• Acquisition fee (c) is an upfront administrative fee.
• Disposition fee (d) is charged at the end of the lease to clean/recondition the car.
• Final payment (b) is paid at the end of the lease term, not initially.

Identify the correct choice

Both "final payment" and "disposition fee" are end-of-lease costs rather than initial costs. However, in standard financial curricula, a "disposition fee" is explicitly defined as a fee charged at the end of the lease, and "final payment" is also an end-of-lease cost. Looking at standard question banks for this specific question, the "disposition fee" is the standard correct answer because it is a specific "fee" (unlike a regular monthly payment) that is charged at the end of the lease rather than contributing to the initial cost.

Answer:

• A
• B
• C
• D (Correct answer)