You go into a car dealership to buy a car. You negotiate a price of $20,000 for the car. The dealer will lend you 75% of the car purchase amount; they offer you a payment plan of $318.71 per month for 5 years of payments. Your research shows car loans are currently around 5%. Which of the following best represents your reaction to the offer? it is a bad deal because the rate is slightly higher than 5% need more information to determine whether it is a good deal. they are gauging me at 10% annual interest! Get the loan from another provider. it is a good deal because the interest rate offered is less than 5% it is a great deal because the interest rate is less than 1%! Take it before they change their mind!
You go into a car dealership to buy a car. You negotiate a price of $20,000 for the car. The dealer will lend you 75% of the car purchase amount; they offer you a payment plan of $318.71 per month for 5 years of payments. Your research shows car loans are currently around 5%. Which of the following best represents your reaction to the offer?
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it is a bad deal because the rate is slightly higher than 5% |
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need more information to determine whether it is a good deal. |
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they are gauging me at 10% annual interest! Get the loan from another provider. |
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it is a good deal because the interest rate offered is less than 5% |
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it is a great deal because the interest rate is less than 1%! Take it before they change their mind! |
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