Question

Leasing a car for a five-year period usually costs about the same as a five-year loan because __________.
a.
five-year leases are considered more risky and come with a higher interest rate
b.
the longer time period over which to pay the leasing company creates a higher monthly payment
c.
if you lease a car for five years, the leasing company transfers it to a sale with the same monthly payment
d.
even with the lower monthly payments, leasing a car for five years requires a second lease agreement, which comes with additional fees

Answer 1

d.

Most leases are 2–3 years. To keep leasing for five years you'd generally take a second lease when the first ends, incurring another acquisition fee, taxes and lease charges — so the total cost over five years ends up similar to buying on a five‑year loan.