Use the following data:

Down payment (to finance vehicle)	$ 5,800		Down payment for lease	$ 2,100
Monthly loan payment	$ 810		Monthly lease payment	$ 620
Length of loan	48	months	Length of lease	48	months
Value of vehicle at end of loan	$ 10,800		End-of-lease charges	$ 1,050

a. What is the total cost for buying and for leasing a motor vehicle with a cash price of $34,000?

Buying: Leasing:

b.

Based on your answers in part a, would you recommend buying or leasing?

• Leasing

• Buying