Tuesday, May 6, 2008

Buying Vs. Leasing, Scribe Post, May 6th

Hey Guys! So I'm the sexy(ehem) scribe today. Good thing we only had the morning class or else my scribe would have been longer than it should be. So, in class we talked about BUYING or LEASING a car. Mr. "K" told us that when LEASING a car or computer, that means we are renting an item owned by the lessor. We, the lessee, we must make bi-weekly or monthly payments to pay for the following:
  • The depreciation of the item
  • The sales taxes on the amount of depreciation
  • The interest on the unpaid value of the item
At the end of the lease(rent), we either return the item or but it for the term they called "RESIDUAL VALUE" which means "The value of leased property at the end of the lease term".
Also, when we lease a (for example a car), we need to sign a lease agreement.
This agreement specifies 6 things:
  • The initial value of the item
  • The buy out price at the end of the lease
  • The down payment (if there is one)
  • The interest rate
  • The monthly payment
  • Any additional fees
There is also some restrictions applied to the lease agreement you've signed which aren't that bad if you're a good driver and have discipline in mileage. 2 Important Things:
  • A car lease will specify how many kms. you can drive
  • The fee per km. if you exceed this limit.
So, those are the things we learned in class today. With that, we also did a real life situation about BUYING or LEASING a car, whether it'd be new or used.

Whether it'd be BUYING or LEASING a car, it all depends on the price of the car and how it cost and how it should be paid.

We did one example in class where we were asked to find Jesse's monthly payments and the total cost of the truck.
I'll show you step by step how we get the answer in an organized way(ehem ehem).

Alright, that's all I could do to help you guys. I hope you learned something. Comments are welcome(maybe).

Next scribe is, ADAMSON(Chunkynator)

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