Which is better: to lease or to buy? A car buyer has two financing alternatives: to lease or to purchase. Each has operational as well as financial advantages and disadvantages. Therefore, it is critical that you be able to compare them for yourself and make your own decision. Remember, a dealer will recommend the strategy that is most advantageous to him or her. You must protect your own interests. Read each statement that follows and indicate whether it identifies an advantage or disadvantage of a lease or a purchase transaction to acquire a new or previously owned vehicle. Statement Generally requires lower monthly payments and allows you to get more car for your money No mileage allowance or disposition fee associated with the transaction How should you decide whether to buy or to lease a vehicle? Check all that apply. More Closely Associated with a Lease Transaction Purchase Transaction Relate the advantages and disadvantages of leasing and purchasing to your personal situation and decide which financing alternative is better for you at the current time. Accept the financing alternative suggested by your friends. Accept the financing alternative suggested by the dealer. Use a lease-versus-purchase worksheet to identify and compare the total costs of leasing and purchasing and select the method that minimizes both your total cash outlay and your opportunity costs.
Which is better: to lease or to buy? A car buyer has two financing alternatives: to lease or to purchase. Each has operational as well as financial advantages and disadvantages. Therefore, it is critical that you be able to compare them for yourself and make your own decision. Remember, a dealer will recommend the strategy that is most advantageous to him or her. You must protect your own interests. Read each statement that follows and indicate whether it identifies an advantage or disadvantage of a lease or a purchase transaction to acquire a new or previously owned vehicle. Statement Generally requires lower monthly payments and allows you to get more car for your money No mileage allowance or disposition fee associated with the transaction How should you decide whether to buy or to lease a vehicle? Check all that apply. More Closely Associated with a Lease Transaction Purchase Transaction Relate the advantages and disadvantages of leasing and purchasing to your personal situation and decide which financing alternative is better for you at the current time. Accept the financing alternative suggested by your friends. Accept the financing alternative suggested by the dealer. Use a lease-versus-purchase worksheet to identify and compare the total costs of leasing and purchasing and select the method that minimizes both your total cash outlay and your opportunity costs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:3. The lease versus purchase analysis - Part 1
Which is better: to lease or to buy?
A car buyer has two financing alternatives: to lease or to purchase. Each has operational as well as financial advantages and disadvantages.
Therefore, it is critical that you be able to compare them for yourself and make your own decision. Remember, a dealer will recommend the strategy
that is most advantageous to him or her. You must protect your own interests.
Read each statement that follows and indicate whether it identifies an advantage or disadvantage of a lease or a purchase transaction to acquire a
new or previously owned vehicle.
Statement
Generally requires lower monthly payments and allows you to get more car for your money
No mileage allowance or disposition fee associated with the transaction
How should you decide whether to buy or to lease a vehicle? Check all that apply.
More Closely Associated with a
Lease Transaction Purchase Transaction
O
Relate the advantages and disadvantages of leasing and purchasing to your personal situation and decide which financing alternative is
better for you at the current time.
Accept the financing alternative suggested by your friends.
Accept the financing alternative suggested by the dealer.
Use a lease-versus-purchase worksheet to identify and compare the total costs of leasing and purchasing and select the method that
minimizes both your total cash outlay and your opportunity costs.
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