Should Samantha Lease or Purchase? Samantha is considering the purchase of a Toyota Prius and has negotiated a final price of $19,895. She's trying to decide whether to lease or purchase the vehicle. - If she leases, she'll have to pay a $600 security deposit, a capital cost reduction (down payment) equal to 10% of the vehicle's $7,958. - On the other hand, if she buys the Prius, she'll have to make a 10% down payment, pay sales tax equal to 8% of the vehicle's price, and make monthly payments of $529 on a three-year loan that charges 4% interest. - Be aware that funds used as down payments and security deposits incur an opportunity cost of 3%, as they could have earned interest for Samantha over the period of the lease or Ioan. each value to the nearest whole dollar.) AUTOMOBILE LEASE-VERSUS PURCHASE-ANALYSIS Based on this analysis, Samantha should: Use the lease to purchase the Prius, because its total cost is less than the total cost of a loan transaction Use the loan to purchase the Prius, because its total cost is less than the total cost of a lease transaction Use the lease to purchase the Prius, because its total cost is greater than the total cost of a purchase transaction