Question
Your aunt is planning to lease a Tesla luxury car and the dealer's sticker price is $95,000.The lease will be for 30 months only. At
Your aunt is planning to lease a Tesla luxury car and the dealer's sticker price is $95,000.The lease will be for 30 months only. At the end of 30 months, the car will be worth $48,500. If the implied money factor for this lease is 4.5% APR.
1) What will be the monthly payments on this lease for 30 months? To the nearest dollar.
2) The manufactured suggested retail price (MSRP) of the Tesla car described above is $95,000. The dealership informs your aunt that the drive away payment to lease the car for 30 months is $13,750 made up of $1,500 first month lease payment, another $1,500 as security deposit, $750 as acquisition cost and an additional cash down payment of $10,000. If your aunt accepts these lease terms, her lease payments at the beginning of each months is $1,500. Is your aunt better leasing this Tesla or financing the purchase of this Tesla with a bank loan at 2.99% APR? Show your work.
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