Now that you have completed the calculations from part two, would you change your decision to lease or buy? Why or why not?

To Buy or To Lease? That is the Question!

According to USA Today, “Not long ago, in the pre-pandemic age, carmakers braced for the possibility that Americans would eventually stop buying vehicles, choosing instead to rely upon rideshares like Lyft or Uber.

But COVID-19 has upended those expectations, swinging the pendulum back in the direction of personal car ownership as Americans say they’re increasingly likely to drive themselves instead of riding in someone else’s car or taking mass transit.” (Source: https://www.usatoday.com/story/money/cars/2020/09/04/coronavirus-cars-pickups-suvs-covid-19/5703590002)

Let’s assume you do not currently have a car and that you have already made the decision that you want to drive a new car. The next step in the process is to decide whether to buy or to lease. For most shoppers, paying cash for a new car is not an option, so we’ll assume your choices are a new car loan or a lease.

Part One:

Research the pros and cons of buying a new car versus leasing. Ensure that your sources are current, since market conditions change. You should use reliable, credible primary sources. Do not use Wikipedia since it is not a primary source.

Write an essay, no more than 2 pages long, stating your decision and supporting that decision with evidence from your sources. What pros and cons did you consider? What economic factors were important to your decision?

Label the essay as Part One and attach it to the end of this document. Be sure to cite your sources, using MLA format.

Part Two:
For your choice of car make and model, complete the worksheet on page 2. You can usually obtain the needed information from the car maker’s website or from the website of a local dealer. Be sure to check for current or local special offers! Cite the source(s) of your information.

If you have trouble finding the information you need, please ask your instructor for help!

Note: MSRP means manufacturer’s suggested retail price.

Residual value is the value of the car at the end of the lease. It’s the amount you would need to finance if you decided to buy the car when the lease ends. If you can’t find this information, assume it is 60% of the MSRP.

Part Three:

Now that you have completed the calculations from part two, would you change your decision to lease or buy? Why or why not?
Under what circumstances, if any, would you change your decision?

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