SECTION 9-6 pp. 330-332 Leasing a Vehicle

Section Objective Calculate: total cost of leasing a vehicle

Key Words to Know lease (p. 330) An agreement for the use of a vehicle, usually on an annual basis.

Formula Total Lease Cost = (Number of Payments × Amount of Payment) + Deposit + Title Fee + License Fee

A Hard One to Pick p. 330 Why might Gomez lease a vehicle instead of buying one?

Example 1 Ralph Dunn leased a pickup truck for use in his lawn care business. He pays $199 per month for 60 months. His deposit was $2,500. He paid an $80 title fee and a $45 license fee. What is his total lease cost?

Example 1 Answer Step: Find the total lease cost. (Number of Payments × Amount of Payment) + Title Fee + License Fee (60 × $199) + $2,500 + $80 + $45 $11,940 + $2,500 + $80 + $45 = $14,565

Example 2 Tashira Conley least a minivan for family use. She pays $229.00 per month for 39 months. Her deposit was $1,000.00. She paid a $57.50 title fee and a $48.50 license fee. What is her total least cost?

Example 2 Answer Step: Find the total lease cost. (39 × $229.00) + $1,000.00 + $57.50 + $48.50 $8,931.00 + $1,000.00 + $57.50 + $48.50 = $10,037.00

Practice 1 Lease: Four-door car for 48 payments of $269.69 per month. Deposit: $269.69. Title fee: $60. License fee: $75. What is the total lease cost?

Practice 1 Answer $13,349.81

END OF SECTION 9-6 Leasing a Vehicle