Question

1. which statement most accurately describes the advantages and disadvantages of leasing a vehicle?

a. leasing is always cheaper (in both the long and short term), but you do not own the vehicle at the end of the term.
b. leasing a vehicle provides a cheaper monthly payment and less overall maintenance, but typically has additional fees and provides no ownership at the end of the term.
c. leasing is a bit more expensive each month, but allows you to always drive a new vehicle.
d. leasing is typically cheaper per month and allows for cheaper auto insurance, but you do not own the vehicle at the end of the term.

Explanation:

• Option a is incorrect because leasing is not always cheaper long-term; total lease costs can exceed buying over time.
• Option c is wrong because leasing usually has lower monthly payments, not higher ones.
• Option d is inaccurate as leasing does not guarantee cheaper auto insurance; insurance costs depend on multiple factors, not just leasing status.
• Option b correctly outlines key pros (lower monthly payments, less maintenance) and cons (extra fees, no ownership at term end) of vehicle leasing.

Answer:

b. Leasing a vehicle provides a cheaper monthly payment and less overall maintenance, but typically has additional fees and provides no ownership at the end of the term.