Question

A trade-in is most closely related to which of the following? a. A down payment, because it reduces the amount financed. B. An interest payment, because it represents value given to the dealer. C. The list price, because it is derived from the price of a car. D. Amortization, because it is a way of paying for car financing. Please select the best answer from the choices provided A B C D.

Answer 1

Answer:

The answer is "A", because it reduces the amount financed.

Step-by-step explanation:

When a car dealership offers you an amount for trade-in on your car, this amount is taken off of the price of the new car.  This means you finance less after the trade-in than you would have before.

This has the same effect as making a down payment; it lessens the amount you finance.

Answer 2

Answer:

A

Step-by-step explanation: