Question

Need help with this math

Answer 1

Solution

Leased cost for 3 years  = $3000 + 250 *36                    [ 3 years = 36 months]

= 3000 + 9000

Leased the car for 3 years cost you = $12,000

The residual value = $10,000

Assume that you bought the car and used for 3 years and sold for $10,000

Cost of the car = $24,000

Sold after 3 years for $10,000

Your expense in 3 years = $24,000 - 10, 000 = $14,000

By comparing these two options, leasing the car will benefit you since it cost only $12,000.

Therefore, lease car is less expense.

The cost for buying the car and selling it after three years would be $14,000.

That is the answer. :)

Thank you.