To determine which transportation option is the best financial decision, we need to calculate the total cost for each option over the given periods, including the monthly payments, up-front costs, and insurance and gas expenses.
1. Option A (Buy new):
- Monthly payment: [tex]$338 for 60 months
- Up-front cost: $[/tex]2,500
- Insurance and gas: [tex]$275 per month for 60 months
- Total cost: $[/tex](338 \times 60) + 2,500 + (275 \times 60) = \[tex]$39,280$[/tex]
2. Option B (Lease new):
- Monthly payment: [tex]$229 for 36 months
- Up-front cost: $[/tex]3,925
- Insurance and gas: [tex]$275 per month for 36 months
- Total cost: $[/tex](229 \times 36) + 3,925 + (275 \times 36) = \[tex]$22,069$[/tex]
3. Option C (Buy used):
- Monthly payment: [tex]$250 for 36 months
- Up-front cost: $[/tex]2,000
- Insurance and gas: [tex]$225 per month for 36 months
- Total cost: $[/tex](250 \times 36) + 2,000 + (225 \times 36) = \[tex]$19,100$[/tex]
Based on the total cost calculations, Option C (buying used) is the best financial decision with a total cost of \[tex]$19,100, which is significantly lower than the costs of Option A (\$[/tex]39,280) and Option B (\$22,069). This makes Option C the most economical choice for your budget.
