Question
David and Lisa Cosgrove are in their mid-40s and have one child. Their daughter, Alyssa, drives a three-year-old Toyota Camry to community college every day.
David and Lisa Cosgrove are in their mid-40s and have one child. Their daughter, Alyssa, drives a three-year-old Toyota Camry to community college every day. Last week as Alyssa was pulling into the driveway at home her foot slipped off the brake and she crashed into the rear of her mothers pickup truck, which suffered very little damage perhaps because it has a very high rear bumper. Alyssas car was a mess. The Cosgroves received an insurance settlement of $14,000 on Alyssas car, although the loan payoff amount was $16,800. The couple wants to obtain a replacement vehicle that is similar to the one destroyed.
What do you recommend to David and Lisa on automobiles and other major purchases regarding: 1. How to search for a vehicle to replace Alyssas? 2. Whether to replace Alyssas vehicle with a new or used vehicle? 3. Whether to lease or buy a vehicle? 4. How to decide between a rebate and a special low APR financing opportunity if they decide to purchase a new vehicle for Alyssa? 5. How to negotiate with the sellers of the vehicles?
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