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Unformatted text preview: $2,000 Total (future): $15,246.37 "What If" #3: Salvage Value = $17,000 BUY Present Cost: Future cost: $25,000 $30,464.13 Salvage Value $17,000 Total: $13,464.13 LEASE Monthly payment ($200) + Down Payment fv = $13,246.37 $2,000 Total (future): $15,246.37 This analysis of buy vs. lease of a car shows that the only time leasing a new Chevy Camaro will cost less than buying the car is when the salvage value is $15,000. At this salvage value, the savings will only be $217.76. Therefore if the salvage value is less than $15,000, it is more logical to lease rather than buy....
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This note was uploaded on 12/05/2011 for the course ENGR 111 taught by Professor Cardinal during the Winter '08 term at Cal Poly.
- Winter '08