Michael is considering getting a closed-end lease on a car for 48 months. The car dealer quotes him a monthly payment of $349. ?
If Michael were to buy the car with the same down payment, his monthly payment would be $465 a month. Michael's lease payment is lower because
he is not paying for the residual value of the car at the end of four years.
car dealers make a lower profit on leased cars.
leased cars do not come with a manufacturer's warranty.
he is paying finance charges only on the amount of the car that will be depreciated over four years.
One of these are the answers to the question above.
- NinefingerLv 63 weeks ago
- Anonymous1 month ago
Do your own homework. And never lease.
- ANDRE LLv 71 month ago
The lease price is lower as, unlike with a purchase, the payments provide ZERO equity.
- RickLv 41 month ago
The payment is based on a smaller amount in total. The monthly length of terms on a loan can be limited by the miles on the vehicle.
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- regeruggedLv 71 month ago
He is renting, not buying. At the end of the lease he owns nothing. If he buys, he owns the vehicle as long as he pays for it.
- BillLv 71 month ago
He isn't paying interest, and the dealer gets the car back at the end of the lease.