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Compare Auto Financing Sources
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DSST
DSSTPF.084 Compare Auto Financing Sources
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A buyer compares a $1,000 rebate with outside financing to dealer financing that has no rebate but a lower APR. What is the most complete comparison?
A
Choose the dealer loan because the APR is lower.
B
Choose outside financing because any rebate is always enough.
C
Compare only the first monthly payment because rebates affect only the first month.
D
Calculate total purchase cost under each option, including the rebate, interest, fees, term, and prepayment rules.
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