Bus 401 principles of finance week 2 dq_ 2 sets of answer
Assuming a 10% down payment, my payment to the dealership finance company would be the remaining balance due on the car loan minus any interest and fees associated with it. This amount is typically calculated based on factors such as total financing cost, annual percentage rate (APR), term length and loan origination fees. For example, if I was purchasing a car for $20,000 with an APR of 5% and a term length of 48 months then my payment would be approximately $381 per month excluding any additional costs such as taxes or registration fees.
Furthermore, this amount could also change depending on promotions or discounts offered by the dealership which would reduce the overall cost of financing and potentially lower payments even more. Ultimately, understanding all relevant details ahead of time can help ensure that I make informed decisions when selecting a finance plan that works best for me.