Gina has to pay monthly installments for a period of 24 months to her car dealer. After 24 months she can either return the car or buy it at its lower resale value. Has she bought the car on a loan or is it on lease?

Question

hero · Answer

Well, first, she couldn't have bought the car because she wouldn't be making payments, at least not to the car dealer. Secondly, it clearly states "or buy it at its lower resale value". That clearly suggests that she leased it.