Standard: 6.1.12.B Evaluate
the economic reasoning behind a choice. Evaluate
effective allocation of resources for the production of goods and services.
EQ: What are key concepts of purchasing or leasing a vehicle and what are risks and trade offs of owning vs leasing?
Grading:
15 points - paragraph answering essential question
5 points - listing a relevant website
15 points - reacting to two fellow students work
= 35 points
Due Date: Thursday, April 30th at 11:59pm
Goal: Understand key concepts of of owning and leasing a car and understanding the risks and benefits of such a decision.
Task: After studying the website,
- write a paragraph or more answering the essential question of the lesson: YOU WILL POST BELOW IN THE COMMENTS SECTION. PLEASE REMEMBER TO POST YOUR NAME AND PERIOD. SELECT ANONYMOUS OR USE YOUR PRIVATE GOOGLE ACCOUNT TO POST. PUT YOUR NAME AND PERIOD IN THE POST IF YOU SELECT ANONYMOUS.
- Post an informative website about home ownership
- Comment thoughtfully on two other students' blog posts.
WRITE ABOUT THIS:
What are key concepts of purchasing or leasing a vehicle and what are risks and trade offs of owning vs leasing?
hEY THIS IS MY PARAGRAPH
ReplyDeletemr. del period 3
Jonathan R Period 4
ReplyDeleteA car lease could be a consent which one party permits another party to a vehicle for a specified period of your time in exchange for periodic payments, usually monthly installments. Unless your contract has the choice to buy the car at the tip of the contract period, you need to turn it back over to the lessor.
A typical car lease payment will be significantly below your monthly payments would be if you were purchasing the identical vehicle and financing it with a conventional personal automobile loan. Making monthly payments throughout the lifetime of your lease requires a stable and predictable source of income. after you have a lease, it's harder to induce out of the contract than it'd be to sell a second hand vehicle.
Each payment goes toward owning your car outright. Most consumer loan terms are 4-6 years. After paying off your loan, you'll make a choice from driving the car without payments, trading it certain a replacement model, or selling the vehicle. you'll also drive as many miles as you would like without concern about penalties. There are no wear-and-tear fees when your loan runs out, as they’re often are with leases. With a loan, you're paying for the total value of the car over some years, which implies your monthly payments usually are beyond a lease. It will be incredibly frustrating when your newly purchased car features a major mechanical problem shortly after the warranty runs out. But after you own a car past its warranty expiration, the prices of all repairs fall on you.
Link: https://www.creditkarma.com/auto/i/lease-vs-buy-car/
Cristina L, 4th period
DeleteI liked how you defined every key concept that you mentioned. I also think it's interesting how you explained the benefits and risks with owning/leasing. I hadn't thought about all the repairs that come with owning one, especially if it's an old car. Leased cars typically do not have that issue according to one website I found.
Angellise Lopez
DeleteI like how well you explained your self. You didn't jump from one topic to the next, you moved from topic to topic rather smoothly.
Jonathan, can you explain further in your own words?
DeleteJanye Stanley-Period 4
ReplyDeleteA car lease could be a consent which one party permits another party to a vehicle for a specified period of your time in exchange for periodic payments, usually monthly installments. There are many pros and cons for leasing a car. For pros for leasing a car you could have lower monthly payments, Better warranty protection, and you can drive a new car every two or three years. The cons for leasing a car could be you must have a stable predictable income, Leases have strict mileage limits, likely to pay more over time. Now if you buy a car you have ownership, freedom to customize the vehicle, and no end of lease charges, but you will have higher payments.A typical car lease payment will be significantly below your monthly payments would be if you were purchasing the identical vehicle and financing it with a conventional personal automobile loan. Making monthly payments throughout the lifetime of your lease requires a stable and predictable source of income. after you have a lease, it's harder to induce out of the contract than it'd be to sell a second hand vehicle. A new or used vehicle is of the most significant expenses individuals and families incur, other than housing costs. Vehicles whether leased or financed, are considered a typical cost of American life by many people. Leases are often are cheaper in short term. A consumer loan can be helpful as well.Most consumer loan terms are 4-6 years.After paying off your loan, you'll make a choice from driving the car without payments, trading it certain a replacement model, or selling the vehicle. you'll also drive as many miles as you would like without concern about penalties. With a loan, you're paying for the total value of the car over some years, which implies your monthly payments usually are beyond a lease.
https://www.thebalance.com/pros-and-cons-of-leasing-vs-buying-a-car-527145
Jessica ledesma-You did a good job defining aspects of pros and cons. Your descriptions really especially including time frames reminded of unique circumstances similar to renting an apartment. WHen looking at the situation in a place you wont stay for long. If for example college would you lease a car to get transportation as it can get you places and is easy with no no credit and low payments
DeleteJessica I think i might lease but depends on my situation
DeleteHi Janye...It appears some of this is too close to your sources. When I did a google search a lot of it came back copy and pasted. Can you redo in your own words?
DeleteA car lease could be an assent which one gathering licenses another gathering to a vehicle for a predetermined time of your time in return for intermittent installments, normally regularly scheduled payments. There are numerous upsides and downsides for renting a vehicle. For experts for renting a vehicle you could have lower regularly scheduled installments, Better guarantee assurance, and you can drive another vehicle each a few years. The cons for renting a vehicle could be you should have a stable unsurprising salary, Leases have exacting mileage limits, prone to pay increasingly after some time. Presently in the event that you purchase a vehicle you have possession, opportunity to redo the vehicle, and no limit of rent charges, yet you will have higher payments.A commonplace vehicle rent installment will be altogether underneath your regularly scheduled installments would be on the off chance that you were buying the indistinguishable vehicle and financing it with a customary individual car advance.
ReplyDelete-Jaivis
Lots of good info her Jaivis! I liked your thoughts on leasing. It may be a more affordable option if you're not driving a ton of miles every year.
DeleteJanye Stanley period 4
DeleteI like how you gave example of how there are good and bad things about renting a vehicle
Your pros and cons really help when thinking of renting a vehicle.
DeleteSara period 4
Good points I like the pros and cons list.
DeleteJessica Ledesma (4th period): Transportation is an essential part of daily human life whether that be for work, necessities, or basic human connections. A common way people travel is through the use of cars. Cars allow human beings the opportunity to get to places quickly and easily, but how do you get the car? It has been argued whether buying or leasing a car provide a better financial move. When looking at buying a car this can be done in a number of ways. You can buy a car full upfront for a car or through loans. Paying upfront is something that many people don’t do because the high cost which can cause a strain on financial stability for other bare necessities like food and bills since people often live paycheck to paycheck with so many different aspects taking part in our lives including things we didn’t account for. The paying upfront method means that no interest will be charged saving from that aspect. You can also buy a car with a loan. Loans can be done in many different negotiables (in consideration of somebodies credit score) ways that allow people to fit the car buying process into their financial life including offers and incentives such as cash rebate and low interest rates. Interest rates have many aspects and extra cost (application fees, origination fees, commitment fees, schedule fees, funding fees and charged for expenses associated with approving and executing the loan application) and cost and duration depending on how much you can finance of total price. This make payments easier for some but also end up costing them a bit in interest depending on length and down payment. When you buy a car whether up front or through paying of the bank you are able to take ownership of the car and have a lot of freedom that other modes of transportation do not allow. This is different from a lease where a car has a lot of restrictions as a form of rent. You will generally be limited in things like distance traveled since as a rent it is not seen as a long term thing unless you later on buy after the lease is over (which will cost you cost you more than the loans or upfront) but allow people testing or in a situation at the moment struggling to make typically easier payments with still the freedom of what to do with the car after some time.
ReplyDeleteI found it interesting to understand these concepts and how everything fits into people’s situations. I have always wondered how the world around us is changing and read an article in regards “Subscriptions could one day make car ownership a 20th century relic.” The article discussed car subscriptions and how people can easily find ways of transportation without owning a car because of car subscriptions. This is particularly noticeable in large cities where many natives especially youth have long used other forms of transportation than owned cars. Does this in the long term save people money and is it worth some of the freedom you give away from owning your own car?
(https://www.automotiveworld.com/articles/subscriptions-could-one-day-make-car-ownership-a-20th-century-relic/)
By the way I meant to add in the loans help build credit which can be looked at by the persona as a benefit of loans.-Jessica
DeleteCristina L, 4th period
DeleteYour introduction made me realize that another variable can be where you live. For instance, in a city there is public transportation which can give you more options. It's good that you reiterated how everyone's situation is different, because I felt that the Khan video was too specific.
I'm glad your saw things from multiple perspectives. I believe you're correct, there are different reasons that people buy or lease the car they do.
DeleteI liked seeing from your perspective and I do actually agree with you but theres millions of reasons to buy a car. Jaivis
DeleteI like seeing how you gave many reasons of why buying a car is good. Janye Stanley
DeleteCristina L, period 4
ReplyDeleteThere are many things you have to consider before deciding to purchase or lease a car. In order to estimate how much you will end up paying, decide whether you want to own a car or temporarily have it. Either way, it is typically more affordable to own the car, but it depends on several things. When purchasing the car, you have to consider the interest rate, term, and payments, since they are higher than leasing a car. However, if you only want it temporarily, then you can sell it, and gain the expected resale. Due to this resale, it is still more affordable to purchase the car rather than get a new one. On the other hand, you have to consider the term, payments, and mileage of leasing the car. Then, if you decide that you want to keep the car, then the buy-back will usually make it more expensive than purchasing it. Therefore, it is cheaper to purchase the car than to lease it in most cases. Some benefits to leasing a car though, that you are less likely to have trouble with it, since they are more reliable. Business owners may also have a tax advantage. Additionally, you may want to consider whether you want to buy an old or used car. Due to depreciation and other factors, used cars are more affordable, but a new car is more reliable since it is less likely to need maintenance. This may not seem like a big deal, but if the old car needs to be fixed, then you may have to rent another one and this unexpected event may affect your job/business as well.
https://www.consumerreports.org/buying-a-car/pros-and-cons-of-car-leasing/
I agree that cars are an interesting aspect involving many different aspects regarding a persons life. I kept hearing about depreciation. i find it so interesting because i've heard cars are made somewhat weak to break because of crashes and physics so I was wondering about age of cars. Obviously cars get old and get problems do you think it is worth to continuously fix issues for a long term or would you just want a new car to not deal with constant issues. This thought came to me especially in regards to parents giving teens their cars and not reselling. I think you an amazing job summarizing nice the good and bad of a complicated issue.
DeleteI agree that cars are an interesting aspect involving many different aspects regarding a persons life. I kept hearing about depreciation. i find it so interesting because i've heard cars are made somewhat weak to break because of crashes and physics so I was wondering about age of cars. Obviously cars get old and get problems do you think it is worth to continuously fix issues for a long term or would you just want a new car to not deal with constant issues. This thought came to me especially in regards to parents giving teens their cars and not reselling. I think you an amazing job summarizing nice the good and bad of a complicated issue. - Jessica Ledesma sorry i forgot to put my name
DeleteAngellise Lopez
DeleteIf I knew nothing about the pros and cons of buying/leasing a car, your explanation would have helped a lot. Great job!
Christina, I like the pro's and con's of both leasing and purchasing an automobile that you listed.
DeleteAngellise Lopez Period 4:
ReplyDeleteWhat are key concepts of purchasing or leasing a vehicle and what are risks and trade offs of owning vs leasing?
A few things one should consider before leasing or buying a car is...
1.) Analyzing our lifestyle.
2.) Considering our credit score.
3.) Considering our budget and finance.
The reason why we should consider this is because before buying or leasing a car, we need to analyze our lifestyle to see if driving is of big necessity to us. Will buying or leasing a car help us get to work/school faster? Will the car benefit us? Will the car make us money? This is what I mean about analyzing our life style before buying/leasing a car. Checking our credit score is important as well because having good credit can potentially lower our interest rate on a car loan ( This can help us in the long run). Checking our budget and finances heavily applies to our decision on buying or leasing a car. One advantage of buying a car is that you can personalize it however you like. Another advantage of buying a car is that there is no mileage restriction. Some disadvantages of buying a car is that the monthly costs are higher and the maintenance and repairs can be expensive depending on the situation. A few advantages for leasing a car is that the monthly costs are much lower and you can drive a new car every 2-3 years unless you decide to buy the rented car at the end of the contract. A few disadvantages of leasing a car is that you need to have a stable income and you can only drive a certain amount of miles annually. If one goes over the mileage restriction, each mile will cost $0.25. Lastly, renting a car may cost more over time due to the interest rate. To be sure whether buying/renting a car is is the better option, we should ask ourselves if buying or renting will be a burden or a blessing.
https://bettermoneyhabits.bankofamerica.com/en/auto/buying-your-first-car
https://www.thebalance.com/pros-and-cons-of-leasing-vs-buying-a-car-527145
Great job Angellise! I liked how you wrote about how important credit score is to automobile leasing and buying contracts.
DeleteGreat job! You always have a way to outshine on your blogs!
Delete- Jaivis
Deleteshawn thaxton
ReplyDelete- cars are the most efficient way to get around which means a lot of people will either own one or b leasing one.If you choose to buy a car, you pay for the entire value of a vehicle, regardless of how long you keep it or how many miles you put on it. ... Buying a vehicle gives you complete ownership to do what you want with it, while leasing a vehicle only gives you temporary ownership with restrictions on what you can do with it.
https://www.jackingramnissan.com/clp-buying-vs-leasing-a-vehicle
shawn thaxton pt.2
ReplyDeleteThen, if you decide that you want to keep the car, then the buy-back will usually make it more expensive than purchasing it. Therefore, it is cheaper to purchase the car than to lease it in most cases. Some benefits to leasing a car though, that you are less likely to have trouble with it but with buying a car u will most likely have to get a plan of insurance n the car incise you have trouble with it you could get it fixed for a small fee. cars are very efficient but can be very costly
I like your way of thinking and it is a personal opinion yet I agree with you
Delete-Jaivis
Janye-Stanley period 4
ReplyDeleteThere are many things you have to think about before leasing or buying a car. One thing you should consider is how you want to live your lifestyle. Another one is how are you doing financially, and another is do you have enough money. I feel like these 3 things are very important especially if you are buying a car. Finance is very important because if you aren't doing good financially then you won't be able to afford any car. This also comes down to how good your credit score is as well. If you have a good credit score you can get any car you want, and you would be able to afford it. Having a good credit score shows that you pay everything on time and you are actually stable. buying a card can be good, but bad as well. One advantage of buying a car is that you can personalize it however you like. Another advantage of buying a car is that there is no mileage restriction. Some disadvantages of buying a car is that the monthly costs are higher and the maintenance and repairs can be expensive depending on the situation. So I feel like you have to just make sure you have enough money before you buy a car. Now if you don't have a lot of money then maybe you could lease a car. Leasing a car the prices would be lower monthly, and you can also drive it from 2-3 years. To sum it all up, Buying or leasing a car honestly comes down to how you are financially and if you can afford it. The situations might be different so like for example for somebody that is financially stable it might be better for them to buy a card, but for someone else they might have to lease a car.
https://www.consumerreports.org/buying-a-car/leasing-vs-buying-a-new-car/
https://www.investopedia.com/articles/personal-finance/012715/when-leasing-car-better-buying.asp
Jack Molnar period 4
ReplyDeleteMany people see buying a car expensive and unnecessary, but others see leasing as a waste. Both of these choices both have their drawbacks but both also have positives. A car lease is when someone pays periodic payments to use a vehicle for a certain amount of time. They usually have mileage limits and make you pay more if you go more then your limit.
Buying a car is when you pay to own a vehicle. People do this because once you pay the whole thing off its officially yours and there is no limit to what you can do to it and how far you can drive it. For people that are leasing, all they have to do is turn in their car at the end of the lease period and renew their lease and usually get a new vehicle. Buying a car is much expensive though and needs a more financially stable individual. Leasing is very good for people who are not as financially stable or who just want to save money. its almost like the difference between renting and buying a house. If your car that you own and bought starts having an issue it is almost completely up to you financially to fix the issue whereas that is not the case for leased vehicles. Also, if you own a vehicle you can sell it away when you are done with it but depreciation does prevent you from getting back what you paid. If you lease though, you do not have to worry about depreciation or going through the hassle of selling it. At the end of the day it comes down to what you can afford or just all around what you want to do. Some people look at buying a car wasteful and stupid because you can save a lot of money that way and other people do it because they are not financially stable enough to purchase a vehicle and take on all the costs that come with it.
https://www.policygenius.com/blog/pros-and-cons-of-leasing-vs-buying-a-car-heres-how-to-decide/
Good point. I agree that depreciation is a big thing to think about for such purchases.
ReplyDelete