Decision Worksheet

2. Compare one written-cost horizon

Choose one common comparison horizon. When using a lease's disclosed total of payments, make the comparison horizon match the lease term and calculate purchase costs over that same period. If you model a shorter or different horizon, use the contract-specific early-termination treatment when the modeled exit comes before the lease ends, and include replacement transportation when the lease ends before the common horizon, with assumptions visible.

• Vehicle transaction: itemized out-the-door price, cash paid, trade credit, and optional products.
• Loan: APR, amount financed, loan term, finance charge, payments made during the horizon, and estimated remaining balance.
• Lease: for a full-term comparison, use the disclosed total of payments and payment schedule as the baseline under Regulation M. Read the federal disclosure rule. Do not add any disclosed anticipated disposition or pick-up fee, or other included charge, again; the disclosed total already includes them. Compare separately only amounts not included in total of payments or contingent on later events or choices, such as excess mileage, excess wear, early termination, or a purchase option, under matching assumptions. Do not count a refundable security deposit as a lease cost, though its cash timing still belongs in the worksheet.
• Ongoing use: insurance, registration, taxes, fuel or energy, parking, routine maintenance, and expected consumables.
• End position: estimated vehicle value and remaining balance, or the lease return and purchase-option assumptions.