Answer:
Personally I would go for the local dealership's plan because the total interests paid are less, and the monthly payment is not much higher compared to the other plan, but it is also shorter.
There is no such thing as the best financial plan for everyone. Some people may not be able to pay more than $300 per month for a car, so they might have to choose the second alternative even though they will pay more interests. Both financial options have good things and bad things.
The local dealership requires a lower down payment, you pay less total interests but since the plan is shorter, the monthly payments are higher. On the other hand, adventure vehicles requires a higher down payment, charges more interests, but offers a longer financing plan which results in lower monthly payments.
It really depends on the specific client and how much money they have to make the down payment and how much money they will have to pay their monthly payments.
Explanation:
total sticker price $18,000
alternative A alternative B
local dealer adventure vehicles
down payment $3,000 $3,500
financed amount $15,000 $14,500
payment per month $333.67 $265.02
total monthly payments 48 60
total amount $16,016.16 $15,901.20
interests paid $1,016.16 $1,401.20
