Samuel and Grace Paganelli want to replace their $2008$ Ford F$-150$ pickup, which Samuel drives for work. They already own two vehicles, but need to replace Samuel's truck

because it has nearly $175,000$ miles on the odometer. The replacement must be a vehicle that fits his job as a self$-$employed electrician.

Samuel knows that he drives a lot on the job and is worried about the high$-$mileage penalty on many leases, as well as the fees for excessive wear and tear. However

Grace is more concerned about the depreciation loss on a new truck purchase than the mileage penalty and would rather lease the new vehicle. She also likes the idea of having

a new, safer truck every few years without the hassle of resale. Samuel also does not like the fact that, if they lease, they would not own the vehicle he will use for work. Warranty

protection to insure the truck remains in service is very important.

They feel that they can afford to spend $$530$ per month over $5$ years for a new vehicle, as long as their other associated expenses such as insurance, gas, and

maintenance are not too high. The Paganellis also do not know where to start looking for a vehicle without the hassle of negotiating with dealerships.

a$.$ Identify seven sources of vehicle purchasing information and the type of information available in each source.

b$.$ From all the information available, what specific information about the different makes and models is the most relevant to Samuel and Grace in making their

purchasing decision?

c$.$ What is the highest price they can pay on the new vehicle if they can afford a down payment of $$3,900?$ Assume they finance their purchase for $60$ months at $5\mathrm{.}3$ percent. $($Hint:

This is a present value of an annuity problem.$)$

d$.$ According to the National Automotive Dealer Association $($NADA$)$ guide found at

www$.$nadaguides.com, are the Paganellis better off selling their pickup or using it as

a trade$-$in$?$ Consider both price and time in your answer.

e$.$ If they were to lease, what key factors are important in a good lease?

f$.$ Explain to Grace and Samuel the guidelines of leasing and whether or not it is a smart financial move for them to consider. Would they be better off with a closed$-$end or

an open$-$end lease? From a purely financial perspective, would you recommend leasing or financing?

g$.$ If Samuel purchases a "lemon", what alternatives are available to prevent the truck from "short$-$circuiting" his business?

f$.$ Explain to Grace and Samuel the guidelines of leasing and whether or not it is a smart financial move for them to consider. Would they be better off with a closed$-$end or

an open$-$end lease? From a purely financial perspective, would you recommend leasing or financing?

Financing is most likely the better alternative to leasing because: $($Select $$l the choices that apply.$)$

A$.$ there are no modification restrictions: Again as an electrician Samuel is likely to want to modify the truck to suit his business needs.

B$.$ there are no restrictions, or end of lease fees, for "wear and tear": Working as an electrician, Samuel would probably put everything in the vehicle, causing at least some

dents and dings.

C$.$ there are no maintainance costs: With a lease, Samuel would need to make sure the vehicle was serviced often.

D$.$ there are no mileage restrictions: Driving for work normally puts excess miles on the vehicle, especially for an independent businessman like Samuel. For a cost$-$effective

lease, the consumer should drive less than $15,000$ miles annually.

E$.$ there are no insurance requirements: Since you do not own a leased vehicle, Samuel would need to insure any vehicle he

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g$.$ If Samuel purchases a "lemon", what alternatives are available to prevent the truck from "short$-$circuiting" his business? $($Select the best choice below.$)$

A$.$ Lemon laws vary from state to state, but most states allow for a refund on your purchase. However, the following conditions normally apply: $(1)$ you made no attempts to

fix the problem, and $(2)$ the car must have been out of service for at least $30$ days within the first year or within the first $12,000$ miles.

B$.$ Lemon laws vary from state to state, but most states allow for a refund on your purchase. However, the following conditions normally apply: $(1)$ you made four attempts to

fix the problem, and $(2)$ the car must have been out of service for at least $10$ days within the first year or within the first $12,000$ miles.

C$.$ Lemon laws vary from state to state, but most states allow for a refund on your purchase. However, the following conditions normally apply: $(1)$ you made no attempts to

fix the problem, and $(2)$ the car must have been out of service for at least $10$ days within the first year or within the first $12,000$ miles.

D$.$ Lemon laws vary from state to state, but most states allow for a refund on your purchase. However, the following conditions normally apply: $(1)$ you made four attempts to

fix the problem, and $(2)$ the car must have