Note that you need to use HST of 13% for any tax calculations. Do not use PST \& GST as indicated in the workbook. This assignment is based on Ontario which uses HST. Case Study 1 - Buying vs. Leasing 28 marks Jim has chosen the car he wants and must now decide whether to buy or lease it. The car has an MSRP of $21,977 and a residual factor of 34%. Jim negotiates a $500 discount and must pay the following additional costs: - \$660 freight charge - $100 tire/air tax - $75 gas tax - $85 administration fee - \$74 licence plate fee - $20 gas fee Regardless of whether Jim buys or leases the car, the financing is 6.9% compounded monthly for 48 months. If Jim buys the car, the finance fee is $54. If he leases the car, the finance fee is $36. a) Create a deal review and a lease quote for Jim's car (see attached). b) What is the difference in monthly payments? c) What is the total cost in each case? d) What factors should Jim consider as he decides whether to buy or lease? Case Study 2 - New Car vs. Used 22 marks Janet wants to buy her first car. She knows the make and model she wants but has not decided whether it will be new or used. The new car has an MRSP of $24,572. Janet negotiates a discount of $650 and needs to pay the following additional costs: - \$685 freight charge - \$100 tire/air tax - $75 gas tax - $85 administration fee - \$74 licence plate fee - \$20 gas fee -\$54 finance fee Janet has also found a used car of the same make and model that is 2 years old and has been driven 38,547 kilometers. The price of the used vehicle is $14,950. Additional costs include - $85 administration fee - \$74 licence plate fee - \$20 gas fee - \$54 finance fee The interest rate on the loan for the new car is 4.9% compounded monthly. The interest rate on the loan for the used car is 9.9% compounded monthly. In each case, the car will be financed for 36 months. a) Create two deal reviews: one for the new car, the other for the used car (see attached) b) What is the difference in monthly payments? c) What is the total cost in each case? d) What factors should Janet consider as she decides whether to buy the new car or the used car? Module s Case Study 2 Note that you need to use HST of 13% for any tax calculations. Do not use PST \& GST as indicated in the workbook. This assignment is based on Ontario which uses HST. Case Study 1 - Buying vs. Leasing 28 marks Jim has chosen the car he wants and must now decide whether to buy or lease it. The car has an MSRP of $21,977 and a residual factor of 34%. Jim negotiates a $500 discount and must pay the following additional costs: - \$660 freight charge - $100 tire/air tax - $75 gas tax - $85 administration fee - \$74 licence plate fee - $20 gas fee Regardless of whether Jim buys or leases the car, the financing is 6.9% compounded monthly for 48 months. If Jim buys the car, the finance fee is $54. If he leases the car, the finance fee is $36. a) Create a deal review and a lease quote for Jim's car (see attached). b) What is the difference in monthly payments? c) What is the total cost in each case? d) What factors should Jim consider as he decides whether to buy or lease? Case Study 2 - New Car vs. Used 22 marks Janet wants to buy her first car. She knows the make and model she wants but has not decided whether it will be new or used. The new car has an MRSP of $24,572. Janet negotiates a discount of $650 and needs to pay the following additional costs: - \$685 freight charge - \$100 tire/air tax - $75 gas tax - $85 administration fee - \$74 licence plate fee - \$20 gas fee -\$54 finance fee Janet has also found a used car of the same make and model that is 2 years old and has been driven 38,547 kilometers. The price of the used vehicle is $14,950. Additional costs include - $85 administration fee - \$74 licence plate fee - \$20 gas fee - \$54 finance fee The interest rate on the loan for the new car is 4.9% compounded monthly. The interest rate on the loan for the used car is 9.9% compounded monthly. In each case, the car will be financed for 36 months. a) Create two deal reviews: one for the new car, the other for the used car (see attached) b) What is the difference in monthly payments? c) What is the total cost in each case? d) What factors should Janet consider as she decides whether to buy the new car or the used car? Module s Case Study 2