Financial Math: Car Leasing vs Buying Quiz

What is one major downside of leasing a car compared to buying?

• You build equity in the car.

• Monthly payments are higher.

• You own the car at the end of the term.

• You never stop paying for a vehicle.

Which of the following is a benefit of buying a car?

• Lower monthly payments.

• No need to borrow money.

• You own an asset at the end.

• No interest payments.

What is a common advantage of leasing a car?

• You can modify the car as you like.

• You drive a late-model vehicle.

• You avoid finance charges.

• You have unlimited mileage.

Why might leasing be more appealing than buying for some people?

• You pay off the full principal.

• You avoid all maintenance costs.

• You have lower monthly payments.

• You own the car immediately.

What is a potential benefit of buying a used car instead of leasing?

• Higher resale value.

• Significant tax credit.

• No need for a loan.

• Lower repair costs.

What is one advantage of leasing a vehicle?

• You can sell the car at any time.

• You can drive a higher-priced, better-equipped vehicle.

• You own the vehicle at the end of the lease.

• You avoid all maintenance costs.

What is a disadvantage of leasing a vehicle?

• You have unlimited mileage.

• You can modify the car as you like.

• Leasing usually costs more than an equivalent loan.

• You own the vehicle at the end of the lease.

What happens if you exceed the mileage limit in a lease contract?

• You get a refund for unused miles.

• You pay an excess mileage penalty.

• The lease term is extended.

• The vehicle is automatically purchased.

What must you do if you decide to end a lease early?

• Pay a small cancellation fee.

• Return the car without any charges.

• Pay early termination fees and penalties.

• Transfer the lease to another person.

What is required when returning a leased vehicle?

• Return it with modifications.

• Return it in 'as it left the showroom' condition.

• Return it with any amount of wear and tear.

• Return it with a full tank of gas.