Made decision to purchase new wrangler

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Your have made a decision to purchase a new Wrangler. The purchase price is 557,035 The dealer is offering you two alternative financing options for the purchase. They will finance the entire purchase price on a 48 month monthly payment plan at an stated rate of 1.1% or they will give you a cash rebate off of the price of 3,500.00 and finance the remainder on a 48 month monthly payment at 5.7% stated annual rate

(A) Which of these alternatives is a better financing deal?

(B) What would the cash allowance need to be in order to make these options equal

(C) A few years ago dealers were offering similar options except they were willing to finance either for up to 72 months, instead of 48. Why have they shortened the length of loans they are willing to commit to?

Reference no: EM133305428

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