Walid Carries on a Retail Electronics Equipment Sales Business

Multiple Choice

Walid carries on a retail electronics equipment sales business. He needs a new delivery truck. He is considering two options for acquiring the truck: a secured bank financing and lease financing with an option to purchase the truck. Which of the following distinguishes secured bank financing from lease financing?

A) Lease financing will be more expensive than secured bank financing.
B) In a lease financing, Walid would not own the truck until he exercised the option to purchase in the lease.
C) In a lease financing, the lessor does not have to worry about being able to get back the truck.
D) Lease financing will be harder to get than secured bank financing.
E) Nothing. Secured bank financing and lease financing are exactly the same.