Question

for each statement, determine if it is a characteristic of a lease or a purchase of a vehicle.
buying vs. leasing a new car
buying a vehicle
leasing a vehicle
payments are generally higher.
you can sell the car at any time.
the car is returned after the contract.
payments are smaller.
there are no mileage restrictions.
mileage is limited.

Explanation:

• Buying a vehicle:
• "Payments are generally higher": When buying a vehicle, the total cost (including principal and interest if financed) is spread over the loan term. Since the buyer is paying for the full value of the vehicle, payments are often higher compared to leasing (where the lessee pays for the depreciation during the lease term).
• "You can sell the car at any time": Once the vehicle is bought (and paid off, if there was a loan), the owner has full ownership rights. This means they can sell the vehicle in the used - car market at their discretion.
• Leasing a vehicle:
• "The car is returned after the contract": Leasing is essentially a long - term rental. At the end of the lease contract (which has a fixed term, e.g., 2 - 3 years), the lessee is required to return the vehicle to the lessor (usually the dealership or leasing company).
• "Payments are smaller": Since the lessee is only paying for the depreciation of the vehicle during the lease term (not the full value), the monthly payments are typically lower than loan payments for buying the same vehicle.
• "There are no mileage restrictions": This is a characteristic that may vary by lease. However, in some lease agreements, if the lessee pays an additional fee (or has a higher - tier lease plan), they can have no mileage restrictions. In a typical lease, there are mileage limits (e.g., 10,000 - 15,000 miles per year), and exceeding them incurs extra charges. But if the statement says "there are no mileage restrictions", it's a feature of that particular lease.
• "Mileage is limited": As mentioned above, this is a common feature of standard lease agreements. The lessor sets a maximum number of miles the lessee can drive the vehicle during the lease term to protect the vehicle's residual value.

Answer:

• Buying a vehicle: Payments are generally higher; You can sell the car at any time.
• Leasing a vehicle: The car is returned after the contract; Payments are smaller; There are no mileage restrictions (if applicable as per the lease); Mileage is limited (in standard leases).