Juanita is saving up to buy a new truck. She wants to put $4000 down and borrow the rest. That down payment will lower the monthly payment so she can easily afford a new truck. She has been saving for 18 months and has half the money. It will take her about the same amount of time to save up the other half. Is this a good use of credit?

Question

Responses

Yes, borrowing money is always good for business.

No, a smaller down payment would get her a new truck today.

Yes, it is a major purchase and Juanita has figured out what she can afford.

No, Juanita should save for the full price of the truck no matter how long it takes.

Answer 1

The best response in this scenario would be:

Yes, it is a major purchase and Juanita has figured out what she can afford.

Juanita is being responsible by saving for a down payment before borrowing for the rest. This shows that she is considering her financial situation and is likely to make a manageable monthly payment.