31
practice examMultiple Choice

Practice Exam

Question 31 • Financial Math

Which potential advantage applies to leasing a car but not to buying it?

Answer
A
the ability to sell the car for profit at the end of the lease
B
customizing the car with any modifications desired
C
having ownership of the car after the lease ends
D
typically lower monthly payments and a warranty throughout the lease term

Explanation

Leasing often has lower monthly payments than buying because you pay for the car’s use during the lease term rather than its full purchase price. The lease may also keep the car under warranty for the entire term. Selling the car for a profit or owning it outright are not typical benefits of leasing, and leases often restrict modifications.

AI-written and checked against the verified answer.

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