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You have been researching and shopping for cars for weeks and have finally found the car for you. It's reliable, it's safe, it gets "ok" gas mileage, and you think it will fit your lifestyle. You have been able to negotiate the information listed below, but now you are not sure if you want to buy the car or lease the car, so you want to compare the financial impacts and make some decisions. Please fill in the blanks below, using both the AUTO LOAN CALCULATOR and the AUTO LEASE CALCULATOR modules from the EZ Calculator APP, and answer the associated questions. . . . Negotiated Price $35,500 Sales Tax 8% Title/Tax/Reg $1,500 Down payment $5,000 (purchase option only) Depreciation % to calculate residual value (Yr1=30%, Yr2=20%, Yr3=10%, Yr4=10%, Yr5=10%, Yr6=10%) Loan Option: 4% APR monthly compounding for 3 years Lease Option: 4% APR monthly compounding, 3 years . TOTAL COST to BUY-3 YEAR LOAN TOTAL COST to LEASE - 3 YEAR LEASE Vehicle Price Vehicle Price + TTR TTR Fees Sales Tax Sales Tax Residual Value Down Payment Monthly PMT Amount Financed = TOTAL COST TO LEASE Monthly PMT Total LOAN Paid +Down Payment -Residual Value = TOTAL COST TO BUY Residual Value = $39,960 (vehicle price + fees + taxes) 3 years accumulated derr = 60%. Residual value = $39,960 * (1-60) = $15,984 1. Which option would you personally choose and why? Remember, there are multiple factors to consider. 2. If the residual value was even lower on the lease option, would this increase or decrease your lease payments ? 3. If you thought that the depreciation schedule was too aggressive, and that the residual value would be much higher which option would you choose and why? 4. What would be a way to lower your payments for the purchase option? You have been researching and shopping for cars for weeks and have finally found the car for you. It's reliable, it's safe, it gets "ok" gas mileage, and you think it will fit your lifestyle. You have been able to negotiate the information listed below, but now you are not sure if you want to buy the car or lease the car, so you want to compare the financial impacts and make some decisions. Please fill in the blanks below, using both the AUTO LOAN CALCULATOR and the AUTO LEASE CALCULATOR modules from the EZ Calculator APP, and answer the associated questions. . . . Negotiated Price $35,500 Sales Tax 8% Title/Tax/Reg $1,500 Down payment $5,000 (purchase option only) Depreciation % to calculate residual value (Yr1=30%, Yr2=20%, Yr3=10%, Yr4=10%, Yr5=10%, Yr6=10%) Loan Option: 4% APR monthly compounding for 3 years Lease Option: 4% APR monthly compounding, 3 years . TOTAL COST to BUY-3 YEAR LOAN TOTAL COST to LEASE - 3 YEAR LEASE Vehicle Price Vehicle Price + TTR TTR Fees Sales Tax Sales Tax Residual Value Down Payment Monthly PMT Amount Financed = TOTAL COST TO LEASE Monthly PMT Total LOAN Paid +Down Payment -Residual Value = TOTAL COST TO BUY Residual Value = $39,960 (vehicle price + fees + taxes) 3 years accumulated derr = 60%. Residual value = $39,960 * (1-60) = $15,984 1. Which option would you personally choose and why? Remember, there are multiple factors to consider. 2. If the residual value was even lower on the lease option, would this increase or decrease your lease payments ? 3. If you thought that the depreciation schedule was too aggressive, and that the residual value would be much higher which option would you choose and why? 4. What would be a way to lower your payments for the purchase option

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