A driver must decide whether to buy a new car for $23,000 or lease the same car over a four-year period Under the terms of the lease, she can make a down payment of S2000 and have monthly payments of $150. At the end of the four years, the leased car has a residual value (the amount she pays if she chooses to buy the car at the end of the lease period) of $11,000
Assume she can sell the new car at the end of the four years at the same residual value. Is it less expensive to buy or to lease?
The cost for buying the car and selling it after four years would be s
The cost for leasing the car is $
Is it less expensive to buy or to lease?