Which of the following is an advantage of buying your car over leasing?

• A. You always have access to the newest car models.
• B. You are not responsible for insurance on the vehicle.
• C. You avoid paying any maintenance costs.
• D. You build equity in the car as you make payments.

Answer: (D)

Verified step by step guidance

1. Understand the difference between buying and leasing a car: Buying means you pay to own the car, while leasing means you pay to use the car for a set period without ownership.
2. Identify what 'building equity' means: Equity is the value of ownership you accumulate in the car as you make payments, which you can later use as an asset or trade-in value.
3. Analyze each option in the problem: For example, 'always having access to the newest car models' is typically an advantage of leasing, not buying.
4. Recognize that when you buy a car, you are responsible for insurance and maintenance costs, so those options are not advantages of buying.
5. Conclude that the key advantage of buying over leasing is that you build equity in the car as you make payments, which is a form of investment in the vehicle.