Buying VS Leasing By Ms. Kritikos. 2011 Kia Sorento EX 3.5L V6 A/T 4x4.

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Presentation transcript:

Buying VS Leasing By Ms. Kritikos

2011 Kia Sorento EX 3.5L V6 A/T 4x4

Price with options MSRP $ Options: Premium Package 2 $ 2,700 Cargo Cover $ 125 Destination Charges $ 795 TOTAL ESTIMATED PRICE $ 32,715

Additional Costs Estimated Total Price $32,715 Sales Tax (7%) +$ 2,290 SUBTOTAL$35,005 Title & Registration +$ 491 LESS Down Payment -$ 2,700 TOTAL COST$32,796

Special Incentive Options 2.9% Financing for 48 months $724.46/month $1,000 Rebate $732.09/month 2.9% Financing is better deal – you save $7.63/month

BASIC LOAN - BUYING Total Loan amount $32, Monthly Payments (48 $732.09

LEASE FINANCING Term (48 months) Residual Value (48% x MSRP).48 x $29,095 = $13, Money Factor: ( if special financing OR ) Miles Driven (15,000) Acquisition fee (will be calculated) $500

LEASE FINANCING Security Deposit $550 (not included in loan) TOTAL LOAN: $31, MONTHLY PAYMENT: $531.58

BUYING vs LEASING Which is better? LOAN: $32,796 MONTHLY PAYMENT: $ Own vehicle at end of 48 months Security Deposit $550 (not included in loan) LOAN: $32,486 MONTHLY PAYMENT: $ Walk away from vehicle after 48 months

ADVANTAGES & DISADVANTAGES TO BUYING ADVANTAGES (LIST) DISADVANTAGES (LIST)

ADVANTAGES & DISADVANTAGES TO LEASING ADVANTAGES (LIST) DISADVANTAGES (LIST)

What would you do? State what you would do and why.

Where Can I Find this information? On the course management system (on my website under Auto—Buy or Lease Project). You may also use auto companies websites such as Ford, Chrysler, Kia, Honda, etc.

Project Requirements New vehicle (2010 or 2011) 48 months financing (loan or lease) Total cost of vehicle must be under $50,000 NO Trade-in Sales Tax is 7% Follow project rubric for PowerPoint requirements If no special incentives, use 2.9% financing OR $1,000 cash back – decide which is better PowerPoint comparing buying and leasing— which is better? Provide advantages and disadvantages of both.