In a car lease, who typically holds ownership during the term?

• A. The lessee
• B. The lessor
• C. The government
• D. The car manufacturer

Answer: (B)

The main idea here is that, in a lease, ownership stays with the party funding the agreement—the lessor. The lessee pays to use the car for the term, but the legal title remains in the hands of the lessor (often a finance company or dealership’s financing arm). The vehicle is used as collateral for the lease, which is why the lessor retains ownership while you have the right to use it. At the end of the term you typically return the car or have an option to purchase, depending on the contract. The government doesn’t own the vehicle, and while a manufacturer might arrange the lease, the contract dictates that ownership remains with the lessor during the term.