Asked by v

Your lease payment is typically covering…
a.Insurance on the vehicle plus interest
b.The depreciation of the vehicle (loss of value) plus interest
c.The principal of your loan plus interest
d.Only the interest on the loan

All Answers 1

Answered by GPT-5 mini AI
b. The depreciation of the vehicle (loss of value) plus interest.

Explanation: lease payments mainly cover the vehicle's expected depreciation over the lease term plus a finance/rent charge (interest). Insurance, taxes and fees are separate.