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3 years ago

Someone may choose to own a car instead of leasing because:

Business

2 answers:

yarga [219]3 years ago

7 0

Option A is correct

If someone buys a car, he can sell it later when he needs some money. He can also sell the car if the car becomes obsolete or useless. In the leasing contract, the car will not be owned by the lessee (or the user). So, the lessee cannot sell the car but can use only for the specified period of time. Only the lessor can sell the car and get some money.

Therefore, from the given options, the benefit of the buying vs leasing is that the buyer can sell the car later to get some money back.

Lyrx [107]3 years ago

7 0

Option A is correct.

<u>Someone can choose to own a car instead of leasing it because the car can be resold later to make some money back. </u>

Further Explanation:

Owning a car: When a person buys the car, it becomes the asset of that person. The person becomes the owner of the car after the payment of the value of the car. After the purchase of the car, the owner does not have to follow any condition as the car is owned by him. The owner can use it in any manner and sale it anytime. The resale value of the car is lower than the purchase value of the car.

Leasing a car: The lease is an agreement between two parties for the use of an asset for a definite period of time in the exchange of some monetary compensation. When a car is leased, the person does not get the ownership of the car. They have to pay the periodic (monthly, quarterly or yearly) installment as rent for the use of the car. The user of the car has to return the car at the end of the lease. The lessor may put some conditions regarding the use of the car. It restricts the free use of the car.

Choosing purchase (own) of a car instead of leasing:

The person can choose to purchase (own) the car because the owner of the car can resale it anytime and realize some value of the car.

The owner of a car has all the rights related to the car. In the case of leasing, the lessee does not have rights related to the resale of the asset. The lessee has to return the asset at the end of the lease agreement. The lessee would not get any monetary compensation in case of returning the car, but when the owner of the car sells it, he would realize some money.

The car can be resold later to make some money back: This is the correct option.

The owner of the car can sale it to get some money back. It is not possible in case of leasing the car.

The car can be resold later for a higher price: This is an incorrect option.

Generally, the resale value is lower than the purchase value.

The maintenance costs for a leased car are generally higher: This is an incorrect option.

The maintenance cost does not change due to owning the car or leasing the car.

The insurance costs for a leased car are higher: This is an incorrect option.

The insurance cost does not change due to owning the car or leasing the car.

Learn more:

1. Learn more about costs associated with owning a car

brainly.com/question/2684773

2. Learn more about choosing the purchase of the car

brainly.com/question/1258129

3. Learn more about renting and owning

brainly.com/question/2288011

Answer details:

Grade: High School

Subject: Business Studies

Chapter: Leasing

Keywords: Leasing, purchase, lease agreement, ownership of the asset, asset, someone, may choose, own a car, instead of, leasing, resold, some money back, later, higher price, maintenance costs, leased car are generally higher, insurance costs, higher.

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