You are ready to make a new car purchase and the manufacturer is offering a 60-month, zero percent interest loan, or, a $1,500 cash rebate. The price of the car is $25,000. Which option should you choose?
A) Zero percent loan
B) $1,500 cash rebate
C) Negotiate to get both
D) Not enough information to make the decision.

Question

Quizplus · Accepted Answer

The correct choice depends on various factors not provided, such as the buyer's financial situation, alternative financing options, and how they value immediate savings versus long-term interest savings. Without knowing the interest rates available elsewhere, the cost of alternative financing, or the buyer's preferences and financial strategy, it's impossible to definitively say which option is better.

You Are Ready to Make a New Car Purchase and the Manufacturer