Wk6 assignment Buy vs. Lease

Wk6 assignment Buy vs. Lease - buying vs leasing a vehicle...

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1. What recommendations does the calculator make for you? If I had no down payment or trade in the Auto calculator recommends that I should lease my next car. The reason for that is financing the purchase of a vehicle generally requires a down payment in the form of cash or a trade-in. In contrast, with leasing a down payment is usually not required (but is offered as an optional way of reducing the interest rate on the lease). Now if I were to go with a small down payment Auto calculator recommends that I should buy my next car. The reason for that is that I like to keep my cars as long as possible. Leases expire after two to four years and there is generally no option for renewing a lease on the same car. So, if you continually lease, you will get a new car every two to four years. 2. Did the recommendation change the way you previously thought about buying vs. leasing a car? The recommendation did not change the way I think about
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Unformatted text preview: buying vs. leasing a vehicle. I personally would not want to lease a car due to the fact you can only keep the car for two to four years, and you are constantly making payments on the car and you do not ever get to own it. 3. Do you think you will follow the recommendations made by the calculator? Explain why or why not. With the first recommendation about leasing, I absolutely would not follow their recommendation, do to the fact that I do not want to pay on a vehicle that I will never be able to keep or own. As for the recommendation on purchasing my next vehicle I would follow their recommendation. If I am spending money on something such as a vehicle I want to be able to own it and not lose the monies I put into it. Also, I would like to keep the vehicle that I am purchasing, unless it is a lemon....
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