Contact a car dealer and choose a car to evaluatea

Chapter , Problem 8-41

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Contact a car dealer and choose a car to evaluatea buy-versus-lease decision (keep it reasonablenoLamborghinis). Tell the people at the dealership that you are a studentworking on an assignment.Be truth-ful and dont argue; if they dont want to help you,leave and find a friendlier dealer. For both buyingand leasing, show all assumptions, costs, and cal-culations. Do not include the cost of maintenance,gasoline, oil, water, fluids, and other routine expensesin your calculations.Determine the cars sales price (no need to nego-tiate) and the costs for sales tax, license, and fees.Estimate the Blue Book value in 5 years. Deter-mine the monthly payment based on a 5-year loanat 9% interest. Assume that your down payment islarge enough to cover only the sales tax, license, andfees. Calculate the equivalent uniform monthly costof owning the car.Identify the costs to lease the car (if availableassume a 5-year lease). This includes the monthlylease payment, required down payments, and anyreturn fees that are required. Calculate the equivalentuniform monthly cost of leasing the car.The salesperson probably does not have theanswers to many of these questions. Write a one-to two-page memo detailing the costs. Make a rec-ommendation: Should you own or lease your car?Include nonfinancial items and potential financialitems in your conclusions, such as driving habits andwhether you are likely to drive more than the allowednumber of miles dictated in the lease