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QUESTION
You are going to purchase a vehicle to take with you to college.The car you want retails for $23,599.You have done some research and found the...
You are going to purchase a vehicle to take with you to college. The car you want retails for $23,599.00. You have done some research and found the following options from your local dealership:
- You can finance the car for 3 years at 5.99% if you put a 10% downpayment on the car up front (Hint: how much will you finance?)
- You can finance the car for 2 years at 0% interest and $0 downpayment but you must pay the car off in 2 years or there is a $5,000 charge.
- You can lease the car for 3 years for $349 per month plus a $1200 signing fee.
Calculate the total cost of the car in each scenario. Show all work (you may use bankrate.com to find the monthly payment for the car that is financed at 5.99%). Then, give three factors that would influence your decision on how to pay for the car. Which option would you choose? Why is this the best option for you?
