At Westonci.ca, we make it easy for you to get the answers you need from a community of knowledgeable individuals. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.
Sagot :
If he leases.
$600 (for security deposit) + (450 x 36) for closed end lease
$600 + $16,200
Lease cost = 16,800
If he buys.
$2,400 (for down payment) + (515 x 36) for closed end lease + 1,080 (for 6% tax)
$2,400 + $18,540 + $1,080 = $22,020
Purchase cost = $22,020
After selling at the residual value of $6,500
Purchase cost minus Residual value
$22,020 - $6,500
=$15,520
So, if he leases he will not be able to have the residual value and he'll be spending more than if he buys. he'll actually be making a loss of $1,280.
Final thought: HE SHOULD BUY!
$600 (for security deposit) + (450 x 36) for closed end lease
$600 + $16,200
Lease cost = 16,800
If he buys.
$2,400 (for down payment) + (515 x 36) for closed end lease + 1,080 (for 6% tax)
$2,400 + $18,540 + $1,080 = $22,020
Purchase cost = $22,020
After selling at the residual value of $6,500
Purchase cost minus Residual value
$22,020 - $6,500
=$15,520
So, if he leases he will not be able to have the residual value and he'll be spending more than if he buys. he'll actually be making a loss of $1,280.
Final thought: HE SHOULD BUY!
[tex]the\ lease:\\\\ \$450\cdot36(payments)- \$600(security)=\$16,200-\$600=\$15,600 \\\\ the\ purchase:\\\\down\ payments+payments+sales\ tax- residual\ value= \\\\=\$2,400+\$515\cdot36+\$1,080-\$6,500=\$2.400+\$18,540-\$5420=\\\\=\$15,520\\\\\$15,520<\$15,600\\\\Ans.\ the\ best\ strategy\ for\ Damien\ is\ the\ purchase\ of\ the\ car.[/tex]
We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.