1. SECTION 9-6 pp
Leasing a Vehicle

2. Section Objective
Calculate:
total cost of leasing a vehicle

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

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

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

6. 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?

7. 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

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

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

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

11. Practice 1 Answer
$13,349.81

12. END OF SECTION 9-6
Leasing a Vehicle