To determine the best financial decision, we will analyze the total cost of each transportation option over their respective terms.
Option A: Buy new
- Monthly payment: [tex]$338 for 60 months
- Up-front cost: $[/tex]2,500
- Insurance and gas: [tex]$275 per month
The total cost for Option A is:
\[ (338 \times 60) + 2500 + (275 \times 60) = \$[/tex]39,280 \]
Option B: Lease new
- Monthly payment: [tex]$229 for 36 months
- Up-front cost: $[/tex]3,925
- Insurance and gas: [tex]$275 per month
The total cost for Option B is:
\[ (229 \times 36) + 3925 + (275 \times 36) = \$[/tex]22,069 \]
Option C: Buy used
- Monthly payment: [tex]$250 for 36 months
- Up-front cost: $[/tex]2,000
- Insurance and gas: [tex]$225 per month
The total cost for Option C is:
\[ (250 \times 36) + 2000 + (225 \times 36) = \$[/tex]19,100 \]
Comparing the total costs, Option C (Buy used) has the lowest total cost at $19,100. Therefore, based on the financial analysis, Option C is the best transportation option for you as it provides a significant savings over the other options.
