You Are in the Process of Purchasing a New Automobile

question 6

Essay

You are in the process of purchasing a new automobile that will cost you $25,000.The dealership is offering you either a $1000 rebate (applied toward the purchase price)or 3.9% financing for 60 months (with payments made at the end of the month).You have been pre-approved for an auto loan through your local credit union at an interest rate of 7.5% for 60 months.Should you take the $2000 rebate and finance through your credit union or forgo the rebate and finance through the dealership at the lower 3.9% APR?

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Definitions:

Case Prices

The cost or pricing of goods by the case, often used in wholesale or bulk purchasing scenarios.

Skewed Right

A distribution of data showing the majority of values on the left, tailing off to the right.

Re-Expressing

The mathematical transformation of data in statistics to meet the assumptions of statistical models or to improve interpretability.

Assets

Resources owned by a person or entity considered valuable and can be used to meet debts, commitments, or legacies.