chap 9 b - on whether you obtain a loan with relatively...

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Financial Planning Online: Car Loan Interest Rate Quotation Go to: http://www.bankrate.com /auto.aspx This Web site provides a car loan interest rate quotation based on term of the loan and whether you wish to purchase a new or used car delineated by city and state Car Loans (cont’d) Car Loans (cont’d) Financial Planning Online: Prevailing Car Loan Interest Rates Go to: http://biz.yahoo.com /rates/query?t=a This Web site provides average car loan interest rates across the United States and in various states, which provide a useful benchmark for you to consider before obtaining a car loan Financial Planning Online: What Is the Optimal Loan Maturity? Go to: http://www.bankrate.com /calculators/auto/auto-loan-calculator.aspx This Web site provides a comparison of what your car loan payments will be depending
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Unformatted text preview: on whether you obtain a loan with relatively short maturity or a loan with a longer term to maturity. • Purchase versus Lease Decision • Leasing is a popular alternative to buying a car • Advantages of leasing Lower down payment Just return the car at the end of the lease period • Decision is highly dependent on the estimated market value of the car at the end of the lease period • Purchase versus Lease Decision (cont’d) • Disadvantages of leasing You build no equity in the car You are still responsible for maintenance and damages Additional charges may be imposed Too many miles Ending the lease before the specified period...
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This note was uploaded on 02/22/2012 for the course FINANCE 250 taught by Professor Maryevans during the Spring '12 term at Rutgers.

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