Vehicle Leasing and Buying Concepts

The video tutorial explores the mathematics involved in acquiring a vehicle for a small business, focusing on the options of buying or leasing. It explains the financial implications of each option, including taxes, interest, and residual values. The tutorial provides detailed examples and calculations to illustrate the costs associated with buying and leasing, helping viewers understand the long-term financial impact of each choice. The video concludes with a comparative analysis of leasing versus buying, highlighting factors such as warranty, vehicle condition, and business needs.

What is the primary focus of this lesson in the context of small business ownership?

• Marketing strategies

• Buying or leasing a vehicle

• Employee management

• Financial accounting

When buying a vehicle outright, what must you always consider?

• The color of the vehicle

• The type of fuel it uses

• The tax implications

• The brand of the vehicle

What is a key characteristic of leasing a vehicle?

• You can sell the vehicle anytime

• You pay no taxes

• You make regular payments for its use

• You own the vehicle immediately

Which of the following is a benefit of buying a vehicle?

• Lower monthly payments

• Ownership of the vehicle

• Unlimited mileage

• No need for a down payment

What is typically included in the monthly payments of a lease?

• Only the vehicle's base price

• Taxes and interest charges

• Insurance costs

• Fuel expenses

What is a residual value in the context of leasing?

• The initial cost of the vehicle

• The value of the vehicle at the end of the lease

• The total interest paid over the lease term

• The amount of tax paid during the lease

In the example of buying a truck in Saskatchewan, what is a key difference between the new and used truck options?

• The new truck has a warranty

• The used truck is more expensive

• The new truck has more kilometers

• The used truck has no GST

For Victoria's lease, what is the total cost she pays on the first day?

• $1,792.27

• $792.27

• $529.95

• $1,000

In Candice's vehicle acquisition options, which option is the cheapest overall?

• Purchasing outright with a bank loan

• Leasing and buying at the end

• Leasing with no purchase

• Leasing with a one-year loan

What is the penalty for exceeding the kilometer allowance in Laci's lease?

• 25 cents per kilometer

• 20 cents per kilometer

• 15 cents per kilometer

• 10 cents per kilometer