Back to Assignment

Attempts $$ Average $/8$

Apply What You've Learned $-$ Auto Purchase

$q,$ Scenario: You are in the market for a new car. You do not have a trade$-$in$,$ but you have saved $$2,500$ toward a down payment. You currently earn $$3,000\mathrm{.}00$ gross monthly income, of which $30\%$ is witheld for various deductions. You have heard of the $20\%$ rule of thumb, but want to limit your payments to no more than $17\%$ of your net monthly income because of other debt commitments. You. currently have a credit score of $700.$ You expect to drive the car an average $15,000$ miles per year. $q,$

You're considering purchasing a used$-$rather than new$-$car. This strategy offers several advantages. Which of the following is not an advantage of purchasing a used car?

The reduced down payment required for the purchase

The reduced price of the automobile

Avoidance of the vehicle's significant decrease in value due to depreciation

A lack of knowledge and confidence in the mechanical condition of the car

Which of the following will directly affect the final cost of a new car if you elect to purchase the vehicle? Check all that apply.