) The smarter option would be dealer financing over the rebate. That is demonstrated clearly...
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) The smarter option would be dealer financing over the rebate. That is demonstrated clearly with the comparison of the total financing costs. Financial Planning Cases Case 1. The Johnsons Decide to Buy a Car. After several years of riding a bus to work, Belinda finds that she can no longer do so because her employer moved to a location that is not convenient for public transportation. Thus the Johnsons are in the market for another car. Harry and Belinda estimate that they could afford to spend about $12,000 on a good used car by making a down payment of $2,000 and financing the remainder over 36 months at a 6 percent interest rate for $304 per month (b) If they cannot make room in their budget for a $304 monthly car payment, would you recommend they finance a vehicle for 48 or 60 months? Why or why not? 36 months 48 months 60 months IN 36 48 60 1/Y 6% PV PMT (compute) EV Total payments (NX PMT) Total financing costs (total payments - PV)
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