11. Rebate versus low interest rate. Nick has been shopping for a new car for several weeks. He has negotiated a price of $31,530 on a 2019 Toyota Highlander that offers a choice of a $1,500 cash rebate or dealer financing (2.9% for 72 months OR 0% for 60 months or less). Advise Nick about whether he should take advantage of the cash rebate or dealer financing. (hint: remember to adjust the I/Y for a monthly payment) (15 points)
Understanding the purchasing and selling technique what the dealer has provided to Nick.
The Cash rebate given to Nick of amount $1500/- is 2.2% of interest for 60 months if considered dealer financing. But the Dealer has agreed for 0% for 60 months or less and 2.9% interest on financing for 72 months.
Suggesting Nick, Should take the dealer financing for 60 months for 0% instead of taking cash rebate of $1500.
It really makes sense to take the dealer financing because a $1,500 cash rebate is only equal to a difference of 2.2% interest. Wherein here we are provided 0% for 60 months.
11. Rebate versus low interest rate. Nick has been shopping for a new car for several...
Kyle Parker of Concord, New Hampshire, has been shopping for a new car for several weeks. He has negotiated a price of $33,000 on a model that carries a choice of a $2,500 rebate or dealer financing at 2 percent APR. The dealer loan would require a $1,000 down payment and a monthly payment of $561 for 60 months. Kyle has also arranged for a loan from his bank with a 6 percent APR. Use the Run the Numbers worksheet...
Karim Soltan is shopping for a new vehicle, and has noticed that many vehicle manufacturers are offering special deals to sell off the current year’s vehicles before the new models arrive. Karim’s local Ford dealership is advertising 3.9% financing for a full 48 months (i.e., 3.9% compounded monthly) or up to $4000 cash back on selected vehicles. The vehicle that Karim wants to purchase costs $24 600 including taxes, delivery, licence, and dealer preparation. This vehicle qualifies for $1800 cash...
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...