Evaluating financing packages. Assume that youve been shopping for a new car and intend to finance part
Question:
Evaluating financing packages. Assume that you’ve been shopping for a new car and intend to finance part of it through an installment loan.
The car you’re looking for has a sticker price of
$18,000. Custom Vehicles has offered to sell it to you for $3,000 down and finance the balance with a loan that will require 48 monthly payments of $333.67. However, a competing dealership will sell you the exact same vehicle for $3,500 down, plus a 60-month loan for the balance, with monthly payments of $265.02.
Which of these two financing packages is the better deal?
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Related Book For
PFIN
ISBN: 9780357033616,9780357033692
7th Edition
Authors: Randall Billingsley , Lawrence J. Gitman , Michael D. Joehnk
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