To Buy or Lease Your Car? By Alexis Myers, Jordan McCarthy, Justine Horn, Mark Martinos Organizational Communication Final Project created by Team JJAM.

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Presentation transcript:

To Buy or Lease Your Car? By Alexis Myers, Jordan McCarthy, Justine Horn, Mark Martinos Organizational Communication Final Project created by Team JJAM

Raise Your Hands 1)How many of you drive? 2)How many you have a car on campus? 3)How many of you plan on getting a new car in the next 4 years? 4)How many of you think leasing is better than buying?

Summary of Presentation  Definitions of buying/leasing  Why you MIGHT lease & SHOULDN’T lease  Why you SHOULD buy  Price Analysis for buying/leasing  Interview with Toyota  Conclusion

What is Buying and what is Leasing?  To Buy: to acquire the possession of/own it.  To Lease: a legal document outlining the terms under which one party agrees to rent property from another party.

Why You MIGHT Lease  Wealthy  Fewer maintenance costs  Don’t care about customization  Don’t drive a lot  Want a new car every few years

Why You SHOULDN’T Lease  Exceed mileage = more charges  Charges for damages  Return car at end of lease  Need a good credit score  Higher insurance rates  Can’t customize car

Why SHOULD you BUY?  Ownership  Equity  Unlimited mileage  Can sell the car  Customize  Insurance Rates Lower

Toyota Corolla 2014  Sale Price: $16,800 (based on Toyota Financial)  Based prices on average college student Salary/credit score/location Popular vehicle in student age bracket (KBB.com)

When Buying… Buying Price Breakdown 2.99% for 36 months on $16,800 $ monthy payment X 36 payments = $17,585.64

When Leasing… Leasing Price Breakdown 2.99% for 36 months on $16,800 $243 monthy payment X 36 months + $893 due at signing = $9,641

Resale Value when Buying  2011 Toyota Corolla in good condition, worth $11,010  2014 Toyota Corolla in good condition, worth at least $11,000

Total Savings when BUYING  Buying Price $17, $11,000 = $6,  Leasing Price: $9,641 TOTAL SAVINGS: $3, when BUYING

Interview with Toyota Sales Rep Toyota Salesman, Steve Barrow, 20 years total with Toyota, 15 years Sales Manager  Depends on the students needs  Fees associated with leasing  Mileage costs $.10 per mile upfront, $.15 per mile on overage  Favors buying

Conclusion: Reasons to Buy  75% of people bought a car in the last year (Edmonds)  Canceling lease will cost MORE  Cheaper in the long run to buy, save yourself money because you can sell it  You own it, you build equity  No exceeded mileage charge

Conclusion: Questions to ask Yourselves  Do you want to save money?  Do you drive the same or/more than average American?  Do you eventually want to sell/trade in your car?  Do you plan on moving or starting a family in next 4 years?

Questions??

References basics/index.htm car/story?id= #4 nt/buy/Corolla corolla/?r= leasing-vs-buying-a-used-car.html