QuestionMay 27, 2025

QUESTION 3 of 10:Purchasing rather than leasing will generally cause your initial monthly payments to be: a) Higher b) Lower c) The same

QUESTION 3 of 10:Purchasing rather than leasing will generally cause your initial monthly payments to be: a) Higher b) Lower c) The same
QUESTION 3 of 10:Purchasing rather than leasing will generally cause your initial monthly payments to be:
a) Higher
b) Lower
c) The same

Solution
4.3(195 votes)

Answer

a) Higher Explanation 1. Compare Initial Costs Purchasing involves paying the full price or a significant down payment upfront, while leasing typically requires lower initial payments. 2. Analyze Monthly Payments Monthly payments for purchasing include loan principal and interest, which are generally higher than lease payments covering depreciation and interest.

Explanation

1. Compare Initial Costs<br /> Purchasing involves paying the full price or a significant down payment upfront, while leasing typically requires lower initial payments.<br />2. Analyze Monthly Payments<br /> Monthly payments for purchasing include loan principal and interest, which are generally higher than lease payments covering depreciation and interest.
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