Question
she is looking to buy a car and has come to you to a car loan application. She is considering going through a dealership but
she is looking to buy a car and has come to you to a car loan application. She is considering going through a dealership but thought she would come speak with you first. After doing the application, she has been approved for a $20,000 loan with a monthly payment of $325. Please discuss the following with Angela: ( 10 marks)
a) Explain the differences between obtaining financing for a car purchased between going through a bank versus adealership.
b) Calculate her TDS if her gross income is $6,200 per month, she has $1,000 in her savings account, her mortgage payment is $1,400 per month, her property taxes are $200 per month, her heating payments are $150 per month, she has a student loan with payments of $400 per month, and she spends $800 per month on groceries.
c) Based on TDS, does she have the capacity?
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