Question

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.


Please select the best answer from the choices provided

A
B
C
D

Answer 1

A

At the end of a loan you own the car; at the end of a lease the car typically still belongs to the leasing company (unless you exercise a buyout option).