In a lease arrangement, who is the lessee?

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Multiple Choice

In a lease arrangement, who is the lessee?

In a lease, the key idea is who has the right to use the asset and who is obligated to make the payments. The lessee is the person who holds the lease and uses the asset for the term of the agreement, paying the agreed instalments. In automotive leasing, that’s the customer who drives and uses the vehicle under the lease. The owner or lender providing the asset is the lessor, not the lessee. A guarantor merely backs the lessee’s obligations and doesn’t typically use the asset itself. So the correct description is the person who has the lease and uses the vehicle.

In a lease, the key idea is who has the right to use the asset and who is obligated to make the payments. The lessee is the person who holds the lease and uses the asset for the term of the agreement, paying the agreed instalments. In automotive leasing, that’s the customer who drives and uses the vehicle under the lease. The owner or lender providing the asset is the lessor, not the lessee. A guarantor merely backs the lessee’s obligations and doesn’t typically use the asset itself. So the correct description is the person who has the lease and uses the vehicle.

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