Financing a Car

1
Financing a Car

• Tuesday, September 11, 2007

2
Getting Ready

• Cars are NOT cheap.
• Most people cannot pay straight up to purchase a
  new car.
• Today we will be learning about the option that
  most people choose.

3
Financing a Car

• Financing a car is the option most people decide
  to take.
• Financing terms vary with car dealers, banks, or
  other lenders.

4
Financial Plans

• Most finance plans require a down payment. The
  remainder is paid in monthly installments.

5
Deferred Price

• The total amount paid in down payment and monthly
  payments is called the deferred price.
• The amount of the down payment, the number of
  months to pay, and the amount of the monthly
  payment may all differ with each sale.

6
Computing Deferred Price
Monthly Payment

Months

Base Price
7
NOW

• Lets look at some car finance options and
  mathematically discern the total costs.

8
The END