jordan has been saving up for a car and is ready to make a purchase. after researching and budgeting, jordan…

jordan has been saving up for a car and is ready to make a purchase. after researching and budgeting, jordan decides to put a substantial down payment on the vehicle. the car dealership is eager to sell because the down payment provides quick cash and reduces their risk. how does the decision to make a down payment benefit jordans financial situation? it reduces the loan amount and the monthly payments. it guarantees a higher price if the car is resold. it increases the interest rate offered by the dealership. it ensures the return of the down payment when the loan is fully paid off.

jordan has been saving up for a car and is ready to make a purchase. after researching and budgeting, jordan decides to put a substantial down payment on the vehicle. the car dealership is eager to sell because the down payment provides quick cash and reduces their risk. how does the decision to make a down payment benefit jordans financial situation? it reduces the loan amount and the monthly payments. it guarantees a higher price if the car is resold. it increases the interest rate offered by the dealership. it ensures the return of the down payment when the loan is fully paid off.

Answer

Brief Explanations:

A down - payment reduces the amount of money that needs to be borrowed. With a lower loan amount, the monthly loan payments are also lower. Resale price is not guaranteed by a down - payment, a down - payment usually doesn't increase the interest rate, and the down - payment is not returned when the loan is paid off.

Answer:

It reduces the loan amount and the monthly payments.