A local car dealership is offering a 3-year lease deal for the latest model of the Honda Civic LX for $229 per month with $2,099 due at down payment and gives Jared the opportunity to drive a new car in three years without the hassle of having to sell the car, Jared is wondering if it is financially smart to lease a vehicle. The market price for a Honda Civic LX is $19, 980 , and the market value of 3 year-old Honda Civic LX is $14,159. The current national average for auto loan interest rates is 5.27% on a 60 -month loan. Assume that the down payment for buying the new car will be the same as the down payment for leasing the car. a. Build a spreadsheet model that calculates the monthly payment, principal payment, interest payment, beginning balance, and ending balance for each month of the 5-year loan period. What is the ending balance of the loan at the end of the Note: Round your answer to 2 decimal places. b. How much would Jared have paid out of pocket at the end of the 3-year lease period if he decides to lease the vehicle? c. Does buying or leasing make more financial sense to Jared? d. For his weekend hobby of off-road driving, Jared wants to get an AWD Jeep Wrangler instead. A local dealer is offering a 3-year lease deal for the latest model of an AWD Jeep Wrangler for a monthly payment of $275 with $3,995 down. The same vehicle is for sale for $31,795. Jared found that a 3-year-old AWD Jeep Wrangler has a market value of $23,500. Is it less expensive for Jared to lease or purchase? What is the difference in dollar amount between the two options? Note: Round "Cost difference" to 2 decimal places. A local car dealership is offering a 3-year lease deal for the latest model of the Honda Civic LX for $229 per month with $2,099 due at down payment and gives Jared the opportunity to drive a new car in three years without the hassle of having to sell the car, Jared is wondering if it is financially smart to lease a vehicle. The market price for a Honda Civic LX is $19, 980 , and the market value of 3 year-old Honda Civic LX is $14,159. The current national average for auto loan interest rates is 5.27% on a 60 -month loan. Assume that the down payment for buying the new car will be the same as the down payment for leasing the car. a. Build a spreadsheet model that calculates the monthly payment, principal payment, interest payment, beginning balance, and ending balance for each month of the 5-year loan period. What is the ending balance of the loan at the end of the Note: Round your answer to 2 decimal places. b. How much would Jared have paid out of pocket at the end of the 3-year lease period if he decides to lease the vehicle? c. Does buying or leasing make more financial sense to Jared? d. For his weekend hobby of off-road driving, Jared wants to get an AWD Jeep Wrangler instead. A local dealer is offering a 3-year lease deal for the latest model of an AWD Jeep Wrangler for a monthly payment of $275 with $3,995 down. The same vehicle is for sale for $31,795. Jared found that a 3-year-old AWD Jeep Wrangler has a market value of $23,500. Is it less expensive for Jared to lease or purchase? What is the difference in dollar amount between the two options? Note: Round "Cost difference" to 2 decimal places
