Leasing vs. Buying a Car — Quiz

Question 5 • Personal Finance

If a person wanted to purchase his or her dream car, and keep it for many years, is leasing or buying the better option? Why?

Answer

Leasing would be the better option, so the newest model could be driven every few years.

Leasing would be the better option because it would allow the person to customize the car and drive it as much as he or she wants.

Buying would be the better option because the overall cost would be less. After the car is paid off, the owner gets much more value from the car, having already paid it off.

It wouldn't matter, as long as the person got to drive the dream car.

Explanation

Buying is the better choice if the person plans to keep the dream car for many years. Once the loan is paid off, the owner can keep driving the car without ongoing lease payments, making the long-term cost generally lower. Buying also gives the owner more freedom to customize the car, unlike a lease.

AI-written and checked against the verified answer.

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