Question

The chart compares transportation options.

What is a main disadvantage of leasing a vehicle compared to buying a vehicle?

A) the up-front cost
B) the monthly payments
C) the length of payments
D) the cost of insurance and gas

Answer 1

Answer: A) The up-front cost

Explanation: The upfront cost is the amount of money expected to be paid before the vehicle is released to be leased or bought.

As seen in the table presented Option B has a very high Upfront cost of $3925 compared to $2500 of Option A and $2000 of Option C.

The leased vehicle is not yours you are only leasing it for a given period of time as compared to the Option A and Option B that ensures the car finally becomes yours after completion of the payment.

Answer 2

The answer is A) The up-front cost

Step-by-step explanation:

• Let us compare the monthly payment costs of option A ( Buy new) and option B (lease new)

$336 x 60 = 20,160$

$229 x 36 = 8,244 $

So when comparing this option B (lease new) is more feasible.

• When comparing up-front cost, Option A is at more advantage than option B which is more costly.

• When comparing Insurance and gas cost,both option A and option B have the same costs

Thus up-front cost is the only main disadvantage of leasing a vehicle compared to buying a vehicle.