To determine the main disadvantage of leasing a vehicle compared to buying, we can analyze the given data step-by-step.
1. Monthly Payments for each Option:
- Option A (Buy new): \[tex]$338 per month
- Option B (Lease new): \$[/tex]229 per month
- Option C (Buy used): \[tex]$250 per month
2. Upfront Costs for each Option:
- Option A: \$[/tex]2,500
- Option B: \[tex]$3,925
- Option C: \$[/tex]2,000
3. Insurance and Gas Costs per month for each Option:
- Option A: \[tex]$275 per month
- Option B: \$[/tex]275 per month
- Option C: \[tex]$225 per month
4. Duration of Payments for each Option:
- Option A: 60 months
- Option B: 36 months
- Option C: 36 months
5. Total Cost Calculation for each Option over the given payment periods:
- Option A:
\[
\text{Total Cost} = (\$[/tex]338 \text{ per month} \times 60 \text{ months}) + \[tex]$2500 + (\$[/tex]275 \text{ per month} \times 60 \text{ months}) = \[tex]$20,280 + \$[/tex]2500 + \[tex]$16,500 = \$[/tex]39,280
\]
- Option B:
[tex]\[
\text{Total Cost} = (\$229 \text{ per month} \times 36 \text{ months}) + \$3925 + (\$275 \text{ per month} \times 36 \text{ months}) = \$8,244 + \$3925 + \$9,900 = \$22,069
\][/tex]
- Option C:
[tex]\[
\text{Total Cost} = (\$250 \text{ per month} \times 36 \text{ months}) + \$2000 + (\$225 \text{ per month} \times 36 \text{ months}) = \$9,000 + \$2000 + \$8,100 = \$19,100
\][/tex]
6. Identifying the main disadvantage:
- Comparing the upfront costs:
[tex]\[
\text{Option A Upfront Cost} = \$2,500
\][/tex]
[tex]\[
\text{Option B Upfront Cost} = \$3,925
\][/tex]
[tex]\[
\text{Option C Upfront Cost} = \$2,000
\][/tex]
- The highest upfront cost is \$3,925 for Option B (Lease new).
In conclusion, the main disadvantage of leasing a vehicle (Option B) compared to buying (Options A and C) is the up-front cost.
