This does not compare favorably to the near-half value of the trade in with a cash purchase.
A purchase financed through a bank or other lender will be treated by the dealership as a cash purchase, and the car can be obtained for the same price. Assuming a standard down payment of ten percent ($1,600) and an interest rate of 3.5% (.25% above prime) over 36 months, the total cost of the car would be $17,590, including sales tax. Monthly payments would come to $421.95. Investing the principal of $16,000 in the same CD, less the annual costs of payments, would not have a positive balance at the end of three years -- the initial outlay is too great to be overcome by the interest rate that is only 1% higher than that of the loan payments. This would allow the company to absorb the cost of the car at a slower pace, and retains the same trade-in value as the cash purchase, but over a three-year loan the cost is still higher.
Financing through a dealership is not always advisable, but in the current climate nearly every manufacturer is offering zero down and zero APR for the first year for many qualified buyers. The purchase price of the vehicle will jump back up to the $18,000 range for a non-cash purchase, however, and interest will be applied to the...
buying a car is brought up, excitement results from it, after all there is nothing like that new car smell. There are an abundant amount of reasons to purchase a new car. Some of these include the latest safety features, higher gas mileage, accommodating a growing family, the stylish and appealing appearance of cars etc. With today's saturation of car advertisements and marketing in the media, there is no
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hybrid automobile will be the focus of research into the motives consumers have for purchasing hybrids. Issues that will be reviewed include psychological and social factors, attitudes, personalities, family, socioeconomic factors and other issues. History of Hybrid and Electric Autos in the U.S. The first known electric vehicle was built by Robert Anderson in Aberdeen, Scotland, in 1839. The first known hybrid car was designed in 1898 by Ferdinand Porsche; called
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