Question

which of the following would be a good argument to lease rather than buy?
a. \i drive almost twice as much as the average driver.\
b. \i prefer the warranty that covers repair costs of a new car.\
c. \im going to need the car for at least ten years, if it lasts that long.\
d. \i am more interested in investing in a car rather than renting one for a long period of time.\

please select the best answer from the choices provided

a
b
c
d

Explanation:

Analyze the options in relation to leasing

Using the Car Lease Calculation knowledge point, we evaluate how leasing a vehicle differs from buying. Leasing is essentially renting a vehicle for a fixed period (typically 2 to 4 years), during which the vehicle remains under the manufacturer's factory warranty.

Evaluate option A

Leases have strict annual mileage limits (usually 10,000 to 15,000 miles). Driving twice as much as the average driver would result in expensive excess mileage penalties, making leasing a poor choice.

Evaluate option B

New cars come with a manufacturer's warranty that covers major repairs. Because lease terms are short (usually 3 years), the car is almost always covered by this warranty during the entire lease period. This is a strong argument for someone who wants to avoid unexpected repair costs.

Evaluate option C

Leasing is a short-term commitment. If a driver needs a car for ten years, buying is much more cost-effective than continuously leasing or renewing a lease.

Evaluate option D

Investing in a car to build equity or ownership is the definition of buying. Leasing does not build ownership equity, so this is an argument for buying, not leasing.

Answer:

• a. "I drive almost twice as much as the average driver."
• b. "I prefer the warranty that covers repair costs of a new car." (Correct answer)
• c. "I'm going to need the car for at least ten years, if it lasts that long."
• d. "I am more interested in investing in a car rather than renting one for a long period of time."