Tanner is 18 years old and just found the car of his dreams. He got a full scholarship to play soccer in college. He has been working at the local grocery store since he was 16 years old, working part-time during the school year and full-time over the summer. Tanner has negotiated his best deal with the car dealer, and the “on-the-road” price, including tax, title, and license is $21,500. He has $12,000 saved up, but he will need some of that money for college. His parents have been saving money for his college as well.

a. What things does Tanner need to consider before purchasing the car?

b. What are his options for buying the car?

c. Tanner goes to his local banker whom his family has known for 20 years and asks for a loan. What item is the banker going to look at for making the loan decision? What options is the banker going to present to Tanner for purchasing the car and why?