Solution-What financial basis should diana seek to

What financial basis should diana seek to differentiate

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Question - Diana is considering borrowing $10,500 to purchase a new compact SUV valued at $45,500 drive away. Diana has been offered a trade-in value of $35,000 on her current vehicle. She believes that, with the lower registration, insurance, servicing and fuel costs of a new, smaller vehicle, she will save approximately $955 a year on her vehicle operation expenses over each of the next 7 years.

Diana has been looking at the finance contracts available to her from alternative banks and credit unions.

Option A: 3 year loan with end of month repayments of $350.

Option B: 2 year loan with end of month repayments of $500.

Option C: 3 year loan with end of quarter repayments of $1.050.

Required - Is it sufficient to either simply add up the total payments for each alternative or to see which has the lowest regular payment? If not, on what financial basis should Diana seek to differentiate and select between the different finance options?

Reference no: EM133136742

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What financial basis should diana seek to differentiate

Reference no: EM133136742

Reference no: EM133136742

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