What’s the best choice?

Now test your judgment: Carl is about to get a truck. Given his situation, which one these three possible options do you think is best for him?


Carl has his own landscaping business and plans to get a pick-up truck. He’s been considering a brand new one, but the same dealer has a used one in good condition with low miles. He has enough cash to buy the used one, although that might mean paying some of his bills late for a few months and a delay in buying new plants. Three years from now, he’d like to sell the truck to his little brother, who’ll be turning 16. Carl
Buy the used truck for cash and save the fees and interest expense of a loan.

The consequences of your choice

See the consequences of this choice for Carl and hear what your guide has to say.


Carl “I think I made a mistake! Even though I own the truck and I’m not paying loan interest, now I’m broke. I can’t buy as many plants as I need and I’m worried that paying my bills late is going to hurt my business and my credit rating!”
Make a down payment for the used truck and get a loan for the rest.

The consequences of your choice

See the consequences of this choice for Carl and hear what your guide has to say.


Carl “I feel good about my decision. I saved money by buying a used truck instead of a new one. The down payment I made allowed me to get a 36-month loan with payments I can afford. When I make my last loan payment three years from now, I’ll own the truck and I can sell it to my brother—just like I wanted!”
Lease the new truck.

The consequences of your choice

See the consequences of this choice for Carl and hear what your guide has to say.


Carl “I don’t know if I did the right thing. The down payment was small and maintenance costs are included in the lease agreement. But I think I’ll end up paying extra because of the number of miles I drive. And when the lease is up, I won’t own the truck. I’ll have to buy it from the dealer if I want to sell it to my brother.”
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