QuestionDescribe two disadvantages of leasing a car over buying one.
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Choose the correct answer below.
A. Most lease agreements have mileage limits, where if the lessee exceeds the number of miles allows, there can be considerable charges, and when the lease ends, the lessee must sell the car.
B. When the lease ends, the lessee does not own the car, and while leasing the car, the lessee is responsible for keeping it in perfect condition. The lessee is liable for any damage to the car.
C. Leasing does not cover maintenance, and leases require a down payment.
D. Lease payments for a new car are higher than loan payments for the same car, and there are penalties for ending the lease early.
Studdy Solution
STEP 1
What is this asking?
Which of these options best describes two downsides of leasing a car compared to buying one?
Watch out!
Some options might have *one* true disadvantage, but not two!
Don't get tricked!
STEP 2
1. Analyze Option A
2. Analyze Option B
3. Analyze Option C
4. Analyze Option D
STEP 3
Yes, most lease agreements *do* have mileage limits, and going over those limits can mean extra charges.
This is a *disadvantage* compared to buying, where you can drive as much as you want!
STEP 4
Option A says the lessee *must* sell the car at the end of the lease.
This is *incorrect*.
You *return* the car at the end of a lease.
So, even though the mileage limit part is true, this part is false, making the whole option incorrect.
STEP 5
At the end of the lease, you don't own the car.
If you like the idea of owning your car after paying it off, this is a *disadvantage* of leasing.
STEP 6
Leasing often means you're responsible for keeping the car in good condition and paying for any damages beyond normal wear and tear.
This is another *disadvantage* compared to owning, where such costs might be less of a concern after the car is fully paid off.
STEP 7
Leasing *can* sometimes include maintenance coverage, so saying it *doesn't* cover maintenance is not always true.
STEP 8
Leases *can* require a down payment, just like buying a car.
This isn't a clear disadvantage of *leasing specifically*.
STEP 9
Lease payments for a *new* car are not *necessarily* higher than loan payments.
This depends on the specific terms and the length of the loan.
STEP 10
There *are* usually penalties for ending a lease early.
This is a *disadvantage* compared to owning, where you can sell the car whenever you want (although you might lose money depending on the market).
However, the first part of Option D is not reliably true, making the whole option incorrect.
STEP 11
Option B is the correct answer.
It accurately describes two disadvantages of leasing: not owning the car at the end and being responsible for its condition.
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