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For Elizabeth, one of the most exciting aspects of landing a full-time job was being able to buy a different car! Even though she will
For Elizabeth, one of the most exciting aspects of landing a full-time job was being able to buy a different car! Even though she will be working in an urban area, she will need a reliable vehicle to travel to client locations outside the city. Elizabeth is trying to decide if she should buy a new vehicle or a slightly used vehicle, or lease a new(er) vehicle. She has had her eye on a dazzling blue SUV; it stares at her every time she drives by the lot. But she's not sure if she can justify its cost. Here are the costs and benefits she has gathered for each of these options: Lease Midnight- Buy New Monthly payment $550 Buy Used Blue SUV $350 $310 plus $2 per mile if over Time frame 6 years 4 years Warranty Excellent for 100,000 miles Excellent for next 40,000 miles only Full coverage surance $205 per month $155 per month 10,000 miles per year 2 years Excellent for length of lease $185 per month Identify the relevant costs associated with each of Elizabeth's three options. (Round answers to 2 decimal places, e.g. 15.25.) Buy New Buy Used Total average monthly cost $ $ Lease Midnight Blue SUV
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