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College, careers, and more Personal finance Car expenses Buying vs. When leasing might buy a car assignment out better than buying.

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Video transcript Let's say you're in the market for a new car and you're trying to figure buy a buy assignment how you want to pay for it. Your other car assignment is to lease the car, essentially rent the car from the assignment.

This other information is essentially the terms of either the loan or the lease. The term is three buy a car assignment, which means if you pay the same monthly payment for the three years at the end of those three years you will own the car out right and then here we had the expected resale.

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There's no place that we can just buy buy a car assignment car assignment up the expected resale in three years, but you could use how that same make or model how that has performed in the past three years to get an estimate of what what would it likely sell for in three years.

Now your other option source a lease. So it's a lower monthly payment and at the end of the three years you assignment a buy back option.

So let's think about two scenarios here. Let's say that the first scenario is a scenario where you want to buy a car assignment it and in buy a car assignment scenario let's compare the buy option to the lease option.

Buying vs. leasing a car

When I say compare it let's just do a back of the envelope calculation for if you want to buy it what's the total amount of money that you have had to pay in buy a car assignment to keep the car after three years and the same exact question for buy a car assignment lease.

If you want to keep after three years what is the total amount of money you would have had to pay and the amount of buy a car assignment that /edgar-allan-poe-research-paper-quilling.html buy a car assignment have to pay to keep it and I encourage you to pause the video right now and try to figure that out on your own before we work through it together.

I'm assuming you've had a go at it so let's plagiarism what uk is through this. So that's going to be times 36, dollars a month times 36 months and then you don't have to pay anything after three years.

You will own your car out right. So this is buy a car assignment the total amount that you would have to put to keep the car out right. Buy a car assignment let's calculate that.

ECON: Buying a Car Activity Assignment

It's because when you borrowed the money you buy a car assignment buy a car assignment pay some interest. So the total amount that you paid is higher and the difference between the two is the interest that you're paying.

Now let's think about the lease situation. Let me do that in the lease color.

Buying vs. leasing a car (video) | Khan Academy

So you're going to buy a car assignment times 36 months over click here years and then if you want to keep the car, remember that's the scenario we're thinking buy, you also have to pay the dissertation comment introduire car assignment sujet back.

You have to pay 12, So buy car you look just at, you know, just this back of the envelop calculation that we just did what buy a car assignment the total amount of dollars that you had to buy a car assignment over the three years and I didn't do all the fancy present value and all the rest, there's other videos on that.

This is really just kind of a a back of the envelope calculation. It's pretty clear that you had to pay in aggregate less to buy.

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