Buy Versus Lease. Amanda Forsythe of Springfield, Missouri, must decide whether to buy or lease a car she has selected. She has negotiated a purchase price (gross capitalized cost) of $35,000 and could borrow the money to buy from her credit union by putting $3,000 down and paying $751.68 per month for 48 months at 6 percent APR. Alternatively, she could lease the car for 48 months at $495 per month by paying a $3,000 capitalized cost reduction and a $350 disposition fee on the car, which is projected to have a residual value of $12,100 at the end of the lease. Use the Run the Numbers worksheet on page 242 to advise Amanda about whether she should finance or lease the car.

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