Chapter 6-6: Lease a Car

It is important to comparison shop when purchasing a car. What does comparison shop mean?

One of the first steps in shopping for a vehicle is to create a(n)

Residual Value represents the

The number of days you should have your house payment and your vehicle payment be paid by:

Sara wants to buy a car priced at $57,000. She will need to make a down payment of 5% and estimates closing costs of 2.8% of the purchase price. What amount will Sara need for the down payment?

Hugo had a 4-year lease cost of $332 a month and allowed him to drive 12,000 miles a year. He bought 3,000 extra miles each year for an additional charge of 7 cents a mile. Lease processing fees and a down payment totaled $418.

What was the four-year cost of the lease?

Andrea had a two-year car lease with $528 monthly payments. Her lease had a mileage limit of 12,000 miles a year and charged 20 cents a mile for each mile over the limit. Her total mileage for the two years was 30,850 miles. What was the total cost of the lease over its term?

Austin purchased a SUV for a delivered price of $77,340 with a 10% down payment and 3 year payments of $745.74. The vehicle may also be leased for $433.67 a month for 36 months. A down payment of $1,100 is required, and the SUV residual value will be worth $14,200 at the end of the lease.

What is the difference between leasing or buying the SUV? Which costs more?

When the salesman presents the two offers to either buy or lease your vehicle to you, what is your next negotiation strategy?