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Asked by Sarah Randolph on Jun 10, 2024

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A finance lease is equivalent to a consumer lease.

Finance Lease

A type of lease in which the lessor does not select, manufacture, or supply the goods but acquires title to the goods or the right to their possession and use in connection with the terms of the lease.

Consumer Lease

A lease that has a value of $25,000 or less and exists between a lessor who is regularly engaged in the business of leasing or selling and a lessee who leases the goods primarily for a personal, family, or household purpose.

  • Comprehend the differences between finance and consumer leases.
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MC
Matthew ColvinJun 16, 2024
Final Answer :
False
Explanation :
A finance lease is a type of lease where the lessee has use of the asset for most of its useful life and has the option to purchase the asset at the end of the lease term, effectively treating it like an asset purchase. A consumer lease, often referred to as an operating lease, is typically for a shorter period and does not usually end with the lessee owning the asset; it is more like renting.

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