Question

Which of the following would be a good argument to lease rather than buy?
a.
“I drive almost twice as much as the average driver.”
b.
“I prefer the warranty that covers repair costs of a new car.”
c.
“I’m going to need the car for at least ten years, if it lasts that long.”
d.
“I am more interested in investing in a car rather than renting one for a long period of time.

Answer 1

Answer: b.

Explanation:
- a) Bad for leasing — leases have mileage limits and penalties for excess miles.
- b) Good for leasing — leased cars are usually new and remain under manufacturer warranty for the lease term, reducing repair costs.
- c) Bad for leasing — long-term use (10+ years) usually favors buying.
- d) Bad for leasing — leasing is essentially renting, so if you want to "invest" in the car, buy instead.