Problem
Contact a car dealer and choose a car to evaluate a buy-versus-lease decision (keep it reasonable-no Lamborghinis). Tell the people at the dealership that you are a student working on an assignment.Be truthful and don't argue; if they don't want to help you, leave and find a friendlier dealer. For both buying and leasing, show all assumptions, costs, and calculations. Do not include the cost of maintenance, gasoline, oil, water, fluids, and other routine expenses in your calculations. Determine the car's sales price (no need to negotiate) and the costs for sales tax, license, and fees. Estimate the "Blue Book value" in 5 years. Determine the monthly payment based on a 5-year loan at 9% interest. Assume that your down payment is large enough to cover only the sales tax, license, and fees. Calculate the equivalent uniform monthly cost of owning the car. Identify the costs to lease the car (if available assume a 5-year lease). This includes the monthly lease payment, required down payments, and any return fees that are required. Calculate the equivalent uniform monthly cost of leasing the car. The salesperson probably does not have the answers to many of these questions. Write a oneto two-page memo detailing the costs. Make a recommendation: Should you own or lease your car? Include nonfinancial items and potential financial items in your conclusions, such as driving habits and whether you are likely to drive more than the allowed number of miles dictated in the lease.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.