Instead of buying, the dealer offers to lease you a car worth $45000 for $610/mo. for 60 months with $11700 down, lease payments due at the beginning of the month. Assume that if you buy the car, the estimated value in 5 years will be $1350. Should you lease or buy, and how much of an advantage does it provide you? (Assume that an APR of 4% is correct.)

LEASE, > $1000

Doesn't matter, the costs differ by less than $100

BUY, < $1000

BUY, > $1000

LEASE, < $1000