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Unformatted text preview: Prentice-Hall, Inc. 1 Chapter 8 The Automobile Decision Your automobile! Is a _____________________________ ______ : a good that provides benefits that extend beyond one year. Expenses Expenses for auto include: Insurance (vehicle model, driving record) __________________ (annual periodic expense expense) Maintenance & operating expenses (SUVs drink more gas than a Hyundai) Financing charges if applicable Leasing Sign a lease negotiate a fair vehicle value (also known as the: _________________________________ ) Negotiate your trade in price (Kelly Blue book) www.kbb.com Negotiate a low finance charge Choose a vehicle with slow depreciation Types of Leases ____________________ leases, or walk-away leases normally offer a purchase option require the dealer to be responsible for resale account for about 80% of all leases ______________________ leases compare the fair market value to the leases residual value of the vehicle are to be avoided because you pay the difference Your Monthly Lease Payment Your lease payment depends on the following factors agreed-upon price up front fees up-front fees down payment or trade allowance residual value finance charge length of the lease Prentice-Hall, Inc. 2 Amount you pay for lease No easy formula. www.leasesource.com/workshop Lease payments are generally less than purchasing payments....
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- Spring '09