Question

Vehiclemsrp (buying)average annual depreciation rate (buying)down payment (leasing)taxes and fees (added to msrp or down payment, buying, and leasing)lease offer and monthly payment (leasing)government rebate (buying and leasing) suv $30,25018%$2,60015.5%2-year lease, $240 per month for 24 monthsn/a hybrid sedan $25,87515%$2,10014.75%3-year lease, $180 per month for 36 monthsn/a convertible coupe $33,40017.5%$1,99915%2-year lease, $155 per month for 24 monthsn/a sedan $16,80017%$1,50016.25%3-year lease, $175 per month for 36 monthsn/a electric $42,62519.5%$014%3-year lease, $460 per month for 36 months$7,500 plug-in hybrid hatchback $29,50014%$2,50014.5%3-year lease, $199 per month for 36 months$2,000 choose one of the six vehicles and compute and compare the total cost of buying the car (and then later selling) versus leasing the car (and similar subsequent vehicles with the same payment plans) by answering each question. use technology of your choice to produce a chart of the payments over time. use periods of 9 years and 12 years for cars with 3-year lease terms, or periods of 10 years and 12 years for cars with 2-year lease terms. answer the following questions to help you mathematically analyze which choice would be better—buying or leasing a car: what is the time period you are analyzing buying/leasing cars for?

Answer 1

To analyze the total cost of buying and leasing a car over time, we consider the initial MSRP, average annual depreciation rate, down payment, and taxes and fees for buying or leasing a car. By calculating the total cost of buying and leasing each car, we can compare the two options.

Step-by-step explanation:

To analyze the total cost of buying and leasing a car over time, we will consider a time period of 9 years and 12 years for cars with 3-year lease terms, and a time period of 10 years and 12 years for cars with 2-year lease terms. We will compare the total cost of buying a car, including depreciation and selling price, with the total cost of leasing a similar car over the same time period. To calculate the total cost of buying a car, we need to consider the initial MSRP (buying) of the car, the average annual depreciation rate (buying) which affects the value of the car over time, the down payment if any (leasing does not require a down payment), and the taxes and fees added to the MSRP or down payment. To calculate the total cost of leasing a car, we need to consider the lease offer and monthly payment, the average annual depreciation rate (leasing) which affects the value of the car over time, and any taxes and fees added to the MSRP or down payment. Using this information, we can compute the total cost of buying and leasing each car, and create a chart showing the payments over time.