Question

t e You must decide whether to buy a new car for $21,000 or lease thesae car over a three year period Under the tarms of the lease, you can make a down payment value. is it less expensive to buy or to lease? The cost for buying the car and selling it after three years of $1000 and have mondly payments od $200 Al the end of the the leased car has a residual value (the amount you pay it you choose to buy the car at the end of the lease period) of $13,000. Assume you c can sell the new car at the end of the three years at the same residual would be $

Answer 1

When to buy α ne10 ccir , costo) in be 21,000 If Ue lease the 6 dme car for.three yeq Yら Doonpayment--申1000 Mo nt hly pay ent 420o -for three years , we paid at the end of three year, amount is 12x3x200 200 Thus total payment tohen toe lease o cor is 10007200+13002840O Therefore it 44 ษ์ e cost to buy new car is 21,000 and If uot lease for thre eyeaT1S 韦 ohich is less expensive