Leasing vs. Buying a Car

Question 5 • 2025-2026 GSP Mathematical Reasoning for Decision Making

One difference between obtaining a car with a lease or a loan is that _____.

Answer

a loan will not have any additional fees or payments that need to be considered while a lease comes with a handful of additional charges

a lease will not have any additional fees or payments that need to be considered while a loan comes with a handful of additional charges

a loan finances the total purchase price of the car while a lease finances only the depreciated value and related fees

a loan finances the depreciated value of the car with related fees while a lease finances the total purchase price of the car

Explanation

With a loan, you finance the car’s purchase price, typically paying it off over the loan term. With a lease, you generally pay for the car’s expected depreciation during the lease, along with related fees, rather than financing its entire purchase price. Therefore, choice C correctly describes the difference.

AI-written and checked against the verified answer.

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