Assume the Johnsons have narrowed their choices between two cars. The first car is a five-year-old...

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Assume the Johnsons have narrowed their choices between two cars. The first car is a five-year-old Chevrolet with 68,000 miles; it is being sold as is, for $14,000 cash by a private individual. The seller has kept records of all maintenance and repairs on the car. The car was in a minor accident in year 3. The owner is willing to set up a payment plan where the Johnsons can make monthly payments for 36 months. The second car is a three-year-old Toyota with 51,000 miles being sold by a used car dealership. This car was traded in by a previous owner three months ago. The previous owner cited no major mechanical problems, but simply wanted a bigger car. The dealership is asking $16,500 at an interest rate of 6% for 48 months with a written 30- day warranty on parts only. Which used car would you advise the Johnsons to buy? Why? Show calculations to support your argument. (50 points) Assume the Johnsons have narrowed their choices between two cars. The first car is a five-year-old Chevrolet with 68,000 miles; it is being sold as is, for $14,000 cash by a private individual. The seller has kept records of all maintenance and repairs on the car. The car was in a minor accident in year 3. The owner is willing to set up a payment plan where the Johnsons can make monthly payments for 36 months. The second car is a three-year-old Toyota with 51,000 miles being sold by a used car dealership. This car was traded in by a previous owner three months ago. The previous owner cited no major mechanical problems, but simply wanted a bigger car. The dealership is asking $16,500 at an interest rate of 6% for 48 months with a written 30- day warranty on parts only. Which used car would you advise the Johnsons to buy? Why? Show calculations to support your argument. (50 points)

Answer rating: 100% (QA)

To advise the Johnsons on which used car to buy lets compare the two options based on several factors including price condition maintenance records accident history financing terms and warranty Well a... View the full answer