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DIRECTIONS: Replace [Your Name] with your name. Buying vs. Leasing. by [ Danielle Tadlock]. DIRECTIONS: Use the information from the ad to complete the table. Lease Information. DIRECTIONS:
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DIRECTIONS: Replace [Your Name]with your name. Buying vs. Leasing by [Danielle Tadlock]
DIRECTIONS: Use the information from the ad to complete the table. Lease Information
DIRECTIONS: • Use your lease information to calculate the cost for each year. Once the lease is up, assume you sign another lease with the same costs and terms. Repeat until you have yearly costs for 10 years. • YEARS 1, 4, 7, and 10 will be the same. • YEARS 2, 5, and 8 will be the same. • YEARS 3, 6, and 9 will be the same.Your lease indicates that you are responsible for maintenance, so add $200 to the cost of every year. • Find the total cost after 5 years. • Find the total cost after 10 years. Leasing Costs Must complete this whole slide
DIRECTIONS: In Line 1, assume that the price of the vehicle is 90% of the MSRP. The buyer negotiated a lower price than the MSRP. In Line 3, assume a 4% sales tax. In Line 7, find the sum of the values in Lines 1–6. In Line 8, assume a down payment that is equal to 20% of the price of the vehicle. (Round to the nearest dollar if needed.) In Line 10, find the difference between the values in Line 7 and Line 8. Purchase Information
DIRECTIONS: Use the balance due (from slide 4) for the amount financed. Determine the monthly payment. For a 5-year loan at 2.9% APR, the monthly payment per $1000 is $17.924. Multiply the monthly payment by the number of payments to get the total amount of the payments. The finance charge is the amount of interest paid, or the total amount of the payments minus the amount financed. Add the finance charge to the total price (from slide 4) to find the total cost of the vehicle. Purchase Information – Financing The vehicle is financed for 5 years with an APR of 2.9%.
DIRECTIONS: • Find the cost of Year 1by finding the sum of the down payment and the total of 12 monthly payments.Find the costs of Years 2–5 by finding the sum of 12 monthly payments. For the first 5 years, add $200 to the cost of every year for maintenance. • For Years 6–10, assume $850/year for repairs and maintenance. • Find the total cost after 5 years. • Find the total cost after 10 years. Buying Costs Must complete this whole slide
DIRECTIONS: • Complete the tables with information from slides 3 and 6. • Use your yearly costs in slides 3 and 6 to estimate the point in time when the cumulative costs of buying and leasing are about the same. Replace [#] with a year estimate. Cost Comparisons Must complete this whole slide After about [#] years, the cumulative costs of leasing and buying this vehicle are about the same.
Reflection Slide • Pretend that someone asked you if they are better off buying or leasing a car. Write at least three questions you would ask that person to help determine your answer. Explain why you would ask those questions.