Ralph has a credit score of 580, which leads to a higher interest rate. Would leasing a compact SUV and then purchasing it be more cost-effective for him than financing the purchase over 5 years?
Answer
A
Leasing then purchasing is more cost-effective due to lower monthly payments.
B
Financing the purchase is more cost-effective because it leads to ownership without a residual buyout.
C
The decision should be based on the individual's long-term vehicle needs rather than cost.
D
The costs are comparable when the higher interest rate is considered.