Doris is planning to purchase a new Toyota that costs $26,865. She has already saved $3,200 to put toward it. She is thinking if she wants to get a loan for it from her credit union 

 

Assume Doris puts her $3,200 in her savings account, which has an APR of 1.2%. Dean knows she could afford the monthly loan payment that we calculated earlier. If she deposits that amount into her savings account every month how long will it take her to save on her dream car

Questions:

What is the pros and cons of Doris buying the car now with a loan or . saving up to pay cash for the car. 

Describe two sets of circumstances, one when the loan would be the better choice and one when saving up would be the better choice.

Answer rating: 100% (QA)

Pros of Buying the Car with a Loan Immediate Ownership With a loan Doris can purchase the car right away and enjoy the benefits of owning and using it ... View the full answer