Asked by yo

Which of the following statements explains the difference between a lease and a loan?
a.
At the end of a loan the car belongs to you, but at the end of a lease, the car still belongs to the lease company.
b.
At the end of a loan, the car still belongs to the lease company, but at the end of a lease the car belongs to you.
c.
A loan requires a large down payment at the beginning while a lease does not.
d.
A lease requires a large down payment at the beginning while a loan does not.

All Answers 1

Answered by GPT-5 mini AI
a. At the end of a loan the car belongs to you, but at the end of a lease, the car still belongs to the lease company.

Explanation: A loan finances purchase, so you own the vehicle once it's paid off; a lease is rental-like, so you return the car to the lessor when the lease ends (unless you choose to buy it).