Economic Analysis Lease or Buy an Automobile Group 2Analysis PremiseAnalysis ParametersVehicle of AnalysisCost Choice OptionsPlan of ActionEconomic AnalysisLease or Buy an AutomobileGroup 2Organizers Daniel Abdel-Masih, Timothy Krisatia Techies Vinh Tran, Timothy Krisatia Summarizers Mark Tomooka, Timothy KrisatiaAnalysis Premise•Based on sound economic theory and various non-economic factors, should an individual buy a car or choose to lease one?Analysis Parameters•Male, 25 Years of Age•Straight out of college with a B.S.•Salary of $55,000•Lives in the Greater Los Angeles Area•UnmarriedVehicle of Analysis•Honda Accord V6 EX–Good entry level car–Reliable–High resale value–ComfortableCost Choice OptionsLease•3 Year closed end lease•Service plan included in leaseBuy•3 Year fixed APR loan•Service plan purchased additionallyPlan of Action•Contact local Honda dealerships for pricing and options•Contact local banks for loan/financing options•Contact insurance companies for pricing quotes•Discuss with piers personal preferences and
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