Question

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? A Leasing a car. B Renting a car daily. C Utilizing his saving as a down payment and buying the car using an auto loan. D Buying a car using an auto loan.

Answer 1

The correct answer should be C. Utilizing his saving as a down payment and buying the car using an auto loan

If he put's a down payment then his interest rates will be lower and the car will get paid of quicker and he will be able to use even after the 10 years if he wants to. If he leases it he will not be the legal owner while paying with auto loan will make him an owner.

Answer 2

The correct option is © utilizing his savings as a down payment and buying the car using an auto loan.

Further explanation:

The best transportation option Jim has to utilize his savings as down payment so that he can buy the car by using an auto loan. An auto loan is a kind of loan which a person takes to buy any motor vehicle. It’s the best option for Jim to buy a motor vehicle because he can save his money by paying off his car loans early.

AUTO LOAN

Auto loan is a kind of loan in which if the borrower fails to pay the loan then the lender has the right to seize the collateral and he can sell it regain his losses. This type of loan is used to purchase vehicles and the vehicle which a person purchase is referred to as collateral.

If an individual’s car is seized by a lender due to his failure to payment of the loan then this process is referred to as ”repossession”.  

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Answer details:

Grade: High School

Subject: Social Studies

Topic: Auto Loan

Keywords: savings, down payment, transportation, auto loan, motor vehicle, collateral, repossession, seize