Auto Lease Purchase Option and Annual Mileage Allowance | CTFA Exam Preparation

Auto Lease Purchase Option and Annual Mileage Allowance

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Question

Most auto leases include a purchase option. The annual mileage allowance is another consideration of lease term. Mileage allowance typically about:

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A. B. C. D.

B

Auto leases typically include a purchase option at the end of the lease term, which allows the lessee to buy the vehicle for a predetermined amount. However, the annual mileage allowance is another important consideration when it comes to leasing a car.

Mileage allowances can vary widely from lease to lease, but they typically range from 10,000 to 20,000 miles per year. This means that the lessee is allowed to drive the car a certain number of miles each year without incurring additional fees or penalties.

Exceeding the mileage allowance can result in excess mileage charges, which can be expensive. Therefore, it is important for the lessee to carefully consider their anticipated driving needs before signing a lease agreement.

In summary, the most likely answer to this exam question is C. 10,000 to 20,000 miles per year is a typical range for a mileage allowance in an auto lease agreement.