- Budgeting
- Cash Management
- Consumer and Mortgage Loans
- Debt and Debt Reduction
- Time Value of Money 1: Present and Future Value
- Time Value of Money 2: Inflation, Real Returns, Annuities, and Amortized Loans
- Insurance 1: Basics
- Insurance 2: Life Insurance
- Insurance 3: Health, Long-term Care, and Disability Insurance
- Insurance 4: Auto, Homeowners, and Liability Insurance
- The Home Decision
- The Auto Decision
- Introduction
- Determine How a Car Fits into Your Financial Plan
- Understand Key Issues of Auto Ownership
- Understand How to Buy or Lease a New Car and Understand the Lease Versus Buy Decision
- Understand the Challenges of Buying a Used Vehicle
- V. Understand the Special Challenges of Leasing
- Summary
- Assignments
- Family 1: Money and Marriage
- Family 2: Teaching Children Financial Responsibility
- Family 3: Financing Children’s Education and Missions
- Investments A: Key Lessons of Investing
- Investments B: Key Lessons of Investing
Case Study #1
Data:
Maxine negotiated the cost of a car and has asked you to help her decide whether she should lease or buy.
MSRP $25,000 Negotiated cost/capitalized cost $22,000 Down payment $2,000 Lease term and residual 3 years, 55% Fees: Acquisition $500 $150 $35 $200 $300 Rent charge and loan rate 8.35% Sales tax 6.25%
Calculations:
Help her decide based solely on costs. She will pay for the down payment, taxes on the down payment, and fees, but will finance the remainder (including other taxes). Assume that you can sell the purchased vehicle for the amount of the residual value at the end of the lease period.
