For Maren. one of the most exciting aspects of landing a full-time job was being able to buy a different car! Even though she will be working in an urban area, she will need a reliable vehicle to travel to client locations outside the city. Maren is trying to decide if she should buy a new vehicle or a slightly used vehicle, or lease a new(er) vehicle.

 For Maren. one of the most exciting aspects of landing a full-time job was being able to buy a different car! Even though she will be working in an urban area, she will need a reliable vehicle to travel to client locations outside the city. Maren is trying to decide if she should buy a new vehicle or a slightly used vehicle, or lease a new(er) vehicle. She has had her eye on a dazzling blue SUV; it stares at her every time she drives by the lot. But she's not sure if she can justify its cost.
Here are the costs and benefits she has gathered for each of these options:
Buy New Buy Used Lease Midnight-Blue SUV Monthly payment $500 $350 $300 plus $2 per mile if over 10.000 miles per year Time frame 6 years 4 years 2 years Warranty Excellent for 100.000 miles Excellent for next 40.000 miles only Excellent for length of lease Full coverage insurance $200 per month $150 per month $200 per month Operating cost $0.20 per mile $0.20 per mile $0.20 per mile Expected mileage per year 15.000 15.000 15.000 Safety features Maximum Moderate Maximum

 

 

If she bases her decision solely on cost, which option will she choose?

Thanks