DECA Hospitality Services Team Decision Making Practice Exam

What is the term for the ownership document of a car when it has installment payments?

1. Lease

2. Title

3. Mortgage

4. Deed

The correct answer is: Title

The correct answer is the term that refers to the legal ownership documentation of a vehicle, particularly when it is purchased with installment payments. This document is known as the title. When a person buys a car and finances it through installments, they receive a title that proves ownership. Although the buyer may not have full ownership rights until all installment payments are completed (as the lender holds a lien on the vehicle), the title is still the relevant document indicating ownership. The other terms, while related to property and ownership, have distinct meanings. A lease pertains to renting a vehicle or property rather than owning it. A mortgage is a specific type of loan arrangement for real estate, not vehicles. A deed is typically associated with the ownership of real property, such as land or buildings, rather than personal property like cars. Thus, the title is the accurate term for vehicle ownership documentation in this context.