Abstract

The Shortino family has done what many other consumers are doing--Ieasing an automobile. As a result, leasing is becoming an increasingly popular method of automobile financing. But why is leasing advantageous for the Shortino family? Johanna Shortino stated that the principle advantage of leasing was the savings on the down payment. While this may be true, there are also other factors to consider. For example, consider the contrast in the Shortinos' vehicles: an "aging" Datsun versus a new Cadillac. This shift is a significant trade upward among automobile classes and suggests another advantage to leasing: leasing can make expensive cars affordable. In addition, the Shortino's daughter, Samantha, a recent college graduate, chose to lease a new vehicle. Unquestionably, Samantha's choice came under circumstances different from those of her parents. Given the different circumstances, what influenced Samantha's decision to lease?

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Economics

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Economics Commons

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