Lease versus Purchase Decision Cost of Purchasing
W | 9 | WORKSHEET | Worksheet for the Lease versus Purchase Decision | |||
Cost of Purchasing | ||||||
a. | Agreed-upon purchase price | |||||
b. | Down payment | |||||
c. | Total loan payments (monthly loan payment x ___ no. months) | |||||
d. | Opportunity cost of down payment [line b x | |||||
(1 + foregone rate of return (number of years))] | ||||||
e. | Less: Expected market value of the car ar the end of the loan | |||||
f. | Total cost of purchasing | $0 | ||||
Cost of Leasing | ||||||
g. | Down payment (capitalized cost reduction) + security deposit | |||||
h. | Total lease payments (monthly lease payment x ___ no. months) | |||||
i. | Opportunity cost of total initial payment [line g x | |||||
(1 + foregone rate of return(number of years))] | ||||||
j. | Any end-of-lease charges (e.g., excess mileage), if applicable | |||||
k. | Less: Refund of security deposit | |||||
l. | Total cost of leasing | $0 | ||||
$0 | ||||||