Sven and Bailey need a vehicle. Bailey has just been promoted at work and this position is located at one of the company's satellite locations and therefore not on a public transit route. Sven is able to walk to work, so a vehicle is not necessary for his daily commute. He is looking forward to having a vehicle to take their two Scottish sheepdogs to the countryside for long walks and fresh air. Sven nor Bailey have ever owned or leased a vehicle and although they are excited to have a vehicle, they have no idea whether or not they should lease or buy. They have visited a few dealerships and although they would love to drive a Tesla Model 3, they realize that the Nissan Leaf is more in their price range @ $43 000. They have money in their savings that they could use for a down payment but are not sure if that is the best way to spend $4 500. They are comfortable with a 5-year amortization as they do not believe they will drive more than $20 000/year, thus preserving the warranty. They were told that electric cars maintain their value overtime and therefore should use a residual factor of 65%. They live in a province where the sales tax is 13% and they believe they can negotiate an interest rate of 2.75% because the vehicle is brand new. Sven and Bailey are not interested in owning a home and therefore have no mortgage. Sven has a sound defined-benefit pension and so saving for retirement is currently not a priority, although maybe when they are closer to 45, they will give retirement greater attention. (ALL INFORMATION HAS BEEN PROVIDED)

Sven and Bailey were told to come see you so that you could provide them with some comparison calculations re: the monthly vehicle expense if they were to lease or buy (6),

Sven and Bailey would also like to know the total cost of each option (2)

Finally, Sven and Bailey would like to know the advantages and

disadvantages of leasing and/or buying (4)