Fp/101 Week 6 Assignment

o What recommendation does the calculator make for you?

Cars, trucks, vans, SUV's almost everyone will own or lease one in their lifetime. The biggest problem is the decision whether to buy or lease the automobile. Many people are faced with this question. Buying and leasing a car both have many positive and negative attributes. The calculator recommended that I lease a car, instead of buying one.

o Did the recommendation change the way you previously thought about buying vs. leasing a car?

Buying and leasing are two very different approaches to obtaining a vehicle while both have their advantages and disadvantages both can also benefit the purchaser. There are many differences between the two but the primary difference is with buying money is paid to own the vehicle and with leasing money is paid to use the vehicle. Leasing a car is almost like renting a car for an extended period of time which is usually three years; except at the end of the lease there is an option to buy the car. Each month a payment is due to cover the lease. These payments are lower payments then monthly payments on a sold car. Another advantage of leasing a car is that it is in shorter terms. The car will only be yours for a few years. It is not a long term commitment. If you're the type of person that likes to change and drive new cars often, leasing a vehicle enables you to avoid all the repair bills and makes it possible to drive a better, nicer car than you could afford at the time. On the other side of the story is to buy the car. It is as simple as that. It is most common for someone to buy a car rather than lease one. When leasing a car, it usually takes place only on a new car. Cars that are eight or ten years old are not leased. Old cars are bought

o Do you think you will follow the recommendations made by the calculator? Explain why or why not.

I believe I will follow the recommendations made by the calculator to a certain extent. Monthly payments and the money...