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Questions and Answers
What is the main disadvantage of leasing a car?
What is the main disadvantage of leasing a car?
- You need to pay a fee when you turn in the vehicle
- You are paying for the car while it is depreciating the most (correct)
- You may have to pay for expendable items such as tires
- You will have monthly payments forever
What is one of the requirements when you turn in the car at the end of the lease?
What is one of the requirements when you turn in the car at the end of the lease?
- The car must be in the same condition it was when you leased it (correct)
- The car must have the same accessories it had when you leased it
- The car must have the same color it had when you leased it
- The car must have the same mileage it had when you leased it
What is the difference between leasing a car and borrowing the same amount of money?
What is the difference between leasing a car and borrowing the same amount of money?
- Leasing costs more because you are paying for the car while it is depreciating the most (correct)
- Leasing costs less because you are not responsible for any expendable items
- Borrowing costs more because you need to pay interest
- Borrowing costs less because you can keep the car for as long as you want
Study Notes
- Leasing a car usually costs more than borrowing the same amount of money, because you are paying for the car while it is depreciating the most.
- If you lease one car after another, monthly payments go on forever.
- You need to bring the car back in “as it left the showroom” condition, minus usual wear and tear, and configured like it was when you leased it.
- You are still on the hook for expendable items such as tires, which can be more expensive to replace on a better-equipped vehicle with premium wheels.
- You may have to pay a fee when you turn in the vehicle at the end of the lease.
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Description
Learn about the costs and considerations of car leasing compared to borrowing money to purchase a car, including the impact on monthly payments, maintenance responsibilities, and end-of-lease fees.
