<u>The correct option is C).
</u>
<u>Utilizing his saving as a down payment and buying the car using an auto loan is the best transportation option for Jim.
</u>
Further Explanation:
Auto loan:
Auto loan is a type of loan offered for the purpose of car loan. Only the principle amount and the interest rate is being charged by the company or the bank who gives car loan. An upfront amount is paid at the initial time of the purchase of the car. A basic interest rate is charged which is not expensive for the borrower. So auto loan is quite secured method for purchasing a car on loan.
Justification for the correct and incorrect option:
A)
Buying a car using an auto loan: This option is incorrect.
Buying a car using an auto loan will not be a best transportation option for Jim as he will lose all his savings on buying a car.
B)
Leasing a car: This option is incorrect.
Leasing a car is not a good option for Jim as leasing will not make him the car owner. Leasing will just let him use the car and pay a certain amount of money at a regular period to the lease contractor.
C)
Utilizing his saving as a down payment and buying the car using an auto loan: This option is correct.
A down payment for buying the car using an auto loan will be the best transportation option for Jim as it will not lead to high pressure submission of the money at initial process and he can best utilize his saving as a down payment.
D)
Renting a car daily: This option is incorrect.
Renting the car daily will not be a good option for Kim as, it will be quite expensive.
Learn More:
1.Renting and owning
<u>brainly.com/question/2288011
</u>
2. Rental housing agreement
<u>brainly.com/question/2358162
</u>
3. Insurance bill
<u>brainly.com/question/3787447
</u>
Answer Details:
Grade: High school
Chapter: Renting car
Subject: Business studies
Keywords:
Jim is in the market for a car that will last for the next 10 years and has saved up some money for the purpose of a car, what’s the best transportation option for Jim, buying a car using an auto loan, leasing a car, utilizing his saving as a down payment and buying the car using an auto loan, renting a car daily.
