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

A. A down payment, because a trade-in reduces the amount you need to finance.