Question

Which of the following would be a good argument to lease rather than buy?

a.
“I drive almost twice as much as the average driver.”
b.
“I prefer the warranty that covers repair costs of a new car.”
c.
“I’m going to need the car for at least ten years, if it lasts that long.”
d.
“I am more interested in investing in a car rather than renting one for a long period of time.”

Answer 1

Answer: B. I prefer the warranty that covers repair costs of a new car

Answer 2

Answer: The correct answer is : b. “I prefer the warranty that covers repair costs of a new car.”

Step-by-step explanation: - The lease of a car has a lower monthly payment compared to the financing of the car with the same loan terms.

- Leasing contracts mostly have low down payments or sometimes they may not charge that down payment.

. If you drive more than 25,000 km, you must pay a little more per additional km, despite this leasing is still an advantage because when you plan to sell the purchased vehicle you will also be penalized for mileage that exceeds the average.

- Leasing is the most appropriate option when you are going to drive the car for only a few years.

- In leasing a car you pay only for the depreciation of the car rather than the total value.