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Auto Loan Comparison

A new car loan comparison was conducted for a $20,000 car with a $5,000 down payment and 4-year repayment period. Chase Bank offered the lowest APR of 1.88% and monthly payment of $324.64, with a total cost of $20,582.72. Capital 1 offered the highest APR of 3.39% and monthly payment of $334, with a total cost of $21,032.

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146 views

Auto Loan Comparison

A new car loan comparison was conducted for a $20,000 car with a $5,000 down payment and 4-year repayment period. Chase Bank offered the lowest APR of 1.88% and monthly payment of $324.64, with a total cost of $20,582.72. Capital 1 offered the highest APR of 3.39% and monthly payment of $334, with a total cost of $21,032.

Uploaded by

api-264680483
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Auto Loan Comparison

Instructions:
Its time to chops for a loan. Assume you are buying a new car for $20,000. You are trading in
your old car and including it in your down payment. Your down payment totals $5,000. The
principal of the loan is $15,000. The repayment period is 4 years. Look for four financial
institutions and complete the table below. This will go in section 3.2 of your portfolio.

Kind of Loan: New Car Loan


Repayment Period: 4 years/48 months
Name of Financial Institution APR

Principal: $15,000

Finance Charge Total Cost

Monthly Payment

Chase Bank

1.88% $582.72

$20,582.72 $324.64
$15,582.72

US Bank

2.49% $774.74

$20,774.74 $328.64
$15,774.74

Bank of America

2.24% $696

$20,696

$327.00
$15,696

Capital 1

3.39% $1,032

$21,032

$334
$16,032

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