Based on the following information, should you buy or lease this car?Links to an external site.
Lease Information
Initial Security Deposit and Downpayment (combined) is $3,000
Assume the lease is for 48 months and the payment is $400
Assume your interest rate on savings is 0%
You have 12,000 miles a year allowance
You expect to drive 48,000 total miles over the term of the lease
Buy Information
The car's price is $25,000
Sales tax is 10%
Your down payment is $5,000
Assume a 48-month loan at 7%