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After reviewing your budget, you determine that you are able to afford payments of up to $300 per month and wish to take out a
After reviewing your budget, you determine that you are able to afford payments of up to $300 per month and wish to take out a loan for!5 years (60 months). You currently have a trade-in vehicle worth $10,000. You look at average rates for different credit scores and find that if your credit score is above 720, you will be able to get a rate of 3.5%. However, if your credit score is below 600, you end up paying a rate of 14.5%. Since auto loans are paid monthly, determine the most expensive car you can afford with a high credit score and a low credit score. Don't forget about the value of your trade-in! a. How much does a bad credit score cost you in buying power? meaning how much less can you afford to offer for the car as a result of a bad credit rating b
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