Dean is planning to purchase a car for $28,560. He has 12% to put down and can finance the remainder for 5 years.   He can get a loan at 2.14% APR.

1. Write several paragraphs discussing the advantages and disadvantages of both methods. Explain the reasons that a person might choose to finance a car, and the reasons that a person might choose to save up for a car. If you were in Dean's position, what would you do and why?

Answer rating: 100% (QA)

Financing a car and saving up to purchase one outright both have their own set of advantages and disadvantages which can influence an individuals decision based on their financial situation and prefer... View the full answer