Question: John is considering purchasing a brand new vehicle, that will cost him around $20, Currently, he has $25,000 in his savings account. He has 2

John is considering purchasing a brand new vehicle, that will cost him around $20,

  1. Currently, he has $25,000 in his savings account. He has 2 options for this purchase:
  2. Pay $20 000 cash upfront.
  3. Pay a 10% down payment, followed my monthly payments of up to $600 for the next 3 years as he will also be paying an interest.

Evaluating the pros and cons of both options, provide him with financial advise regarding this large purchase.

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