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The chart compares transportation options.
Option A to buy new has a monthly payment of 338 dollars for 60 months, up-front cost of 2,500 dollars, and 275 dollars a month for insurance and gas. Option B to lease new has a monthly payment of 229 dollars for 36 months, up-front cost of 3,925 dollars, and 275 dollars a month for insurance and gas. Option C to buy used has a monthly payment of 250 dollars for 36 months, up-front cost of 2,000 dollars, and 225 dollars per month for insurance and gas.
What is a main disadvantage of leasing a vehicle compared to buying a vehicle?
the up-front cost
the monthly payments
the length of payments
the cost of insurance and gas
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the up-front cost
Leasing (Option B) requires $3,925 up front, which is higher than buying new ($2,500) or used ($2,000). Monthly payments and insurance/gas are not higher for the lease.
Leasing (Option B) requires $3,925 up front, which is higher than buying new ($2,500) or used ($2,000). Monthly payments and insurance/gas are not higher for the lease.
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