You recently relocated to a new town for a new job. It is a smaller town and there is very little public

transportation, so you will need to buy a car. Because of the location of your current job, your employer offers

all employees the option of using a $3,000 stipend towards buying a car.

Your salary is $55,000/year. Your net monthly income is $3,575. Your monthly bills total $2,775 which

includes (student loans - $350, credit cards - $75). Also, you will have another $350 a month in expenses of

having the car - gas, car insurance & car maintenance. You have $2,500 in savings. Your credit score is 660.

You are not sure if you should:

a. Buy a new car - Total price, downpayment, loan amount, monthly payment, loan term, credit score

needed.

b. Buy a used car - Total price, downpayment, loan amount, monthly payment, loan term, credit score

needed.

c. Lease a new car - Downpayment, mileage per year, cost for mileage overage, monthly payment, lease

term, credit score needed.

Car Selection - Select the same car for the lease and the purchase; the used car should be the same

car but 5 years old.

Instructions:

1. Car Selection - Select the same car for the lease and the purchase; the used car should be the same

car but 5 years old.

2. To obtain the information you need, you should contact a national car dealer that sells both new and

used cars (i.e. Honda, Ford, General Motors, Toyota, Infiniti, Jeep, Lexus, etc.) or you can research

online.

3. thorough comparative analysis of the above three (3) car buying options.

4. Generate a chart that details the 3 options.

5. Must be written in paragraphs. 1 inch margins, 12 point font, single spaced. Must be 1 pages.

6. Clearly outline your research on each of the three (3) options, give details.

7. Be sure to include - Price of the car, downpayment required, loan amount, interest rate, loan term (# of years), monthly payment, mileage (for lease only), cost per mile if overage mileage (for lease only)

8. Your selection should factor in your monthly income and expenses, contribution from your employer, your credit score and other factors you think are important.

9. Clearly describe which option you are choosing and why you chose this option.

10. Clearly describe why you did not choose the other 2 options.