Lesson 3
Step 1: Decide on a make and model.
Total purchase price: $46, 602
Step 2: Determine how much money you will need to borrow.
Loan principle: $41, 602
Step 3: Get quotes from several lenders.
Step 4: Calculate your monthly payments and total amounts paid.
Step 5: Decide which loan makes the most sense for you.
Which do you think is the best option in the table? Why? Scenario 2 seems best because it has the least amount added from interest and its monthly payment is low as well.
Total purchase price: $46, 602
Step 2: Determine how much money you will need to borrow.
Loan principle: $41, 602
Step 3: Get quotes from several lenders.
Step 4: Calculate your monthly payments and total amounts paid.
Step 5: Decide which loan makes the most sense for you.
Which do you think is the best option in the table? Why? Scenario 2 seems best because it has the least amount added from interest and its monthly payment is low as well.