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Complete the following two charts based on the information given. Use 0.08625 for NY State sales tax: Buy Car – No Trade-InBuy Car With A Trade-InPurchase Price of Car$32,000Purchase Price of Car$32,000Sales TaxTrade-In Amount of Old Car$7,000Total Cost to Buy CarBalance (Amount Now Owed on New Car)Sales Tax on Balance OnlyBy trading in their old car, how much will this customer save in sales tax? _____How much would the customer have to sell their old car for privately in order to get a better deal than the dealer’s trade-in offer? _________________Question 2 – Assume a 60 month loan at 2.64% - COMPLETE ENTIRE CHART1Agreed Upon Price of Car:$39,9902Trade-In Credit from Old Car$11,5003Amount Owed on New Vehicle4NY State Sales Tax Owed (Multiply Line 3 by .08625)5Total Cost of Vehicle to Purchaser (Add Line 3 and Line 4)6Additional Down Payment$07Amount Financed (Subtract Line 5 - Line 6)8Monthly Car Payment (Use Calculator Program)9Amount of Payments (How Many Months)10Amount Paid to Loan (Multiply Line 8 * Line 9)11True Total Cost of Car (Add Line 6 and Line 10)Question 3 – Compare Purchasing (2.54% Loan at 60 Months) vs. Leasing (39 Months) on a 2021 Ford ExplorerAgreed Upon Price of Car:$49,220Agreed Upon Price$49,220Trade-In Credit from Old Car$12,000Predicted Residual Value$27,750Amount Owed on New VehicleDepreciation AmountNY State Sales Tax OwedAcquisition and Disposition fees$1750 Total Cost of Vehicle to Purchaser “Loan” Amount for LeaseAdditional Down Payment$0Lease Interest Rate.05Amount FinancedLease Term 39 monthsMonthly Car PaymentMonthly PaymentNumber of Payments Sales Tax (on Depreciation Only)Amount Paid to Loan Total Paid to LeaseTrue Total Cost of Car Total Cost to Lease CarWhat is the difference in monthly payments between purchasing and leasing? If this customer usually keeps their cars for about 6 and a half years, which option should they choose? ................
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