Eliza is looking at purchasing a $33,000 new SUV at a dealership with a $2,000 down payment.

Sellwell Cars (the dealership) has offered Eliza two choices:

Option 1) A $2,500 non-cash rebate (amount subtracted from the $33,000 price) and Vicki needs to finance her new vehicle somewhere else. Eliza has done her research and knows that she can get a 6%, 4-year loan from her credit union.

 
Option 2) A dealer loan (no $2,500 rebate) with a rate of 2% over 4 years.

Question to answer:

Don't forget the down payment.

1. Should Eliza take the dealer $2,500 rebate and finance through the credit union (6%, 4-year loan) or should she take the dealer 2%, 4-year loan?

2. Explain why you selected to finance with the dealer or with the credit union. You need to show the monthly payment amounts and total cost of all the payments?