How To Write A Reflective Essay On Auto Financing

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Reflecting on my Auto Financing Findings For this assignment, we were presented with a scenario in which had a credit score of 750 and were looking to finance $15,500 on a $20,000 vehicle purchase, after making a down payment of $5,000. Our overall objective for this assignment was to use the scenario given and research the different financing options we could be eligible for based reports from car dealerships, bank websites, and auto loan calculators. If you refer to my appendix, you will find a chart that includes the details of my research results, as well as an explanation of each finding. Based on my findings, it is my job to determine which loan I would choose to accept. After comparing the financing deals generated for me through different auto loan calculators my final decision would be to accept the second …show more content…
Based on my excellent credit score, the $15,500 loan I need, and the 48-month loan period I choose, PenFed credit union was willing to offer me an interest rate of 2.74%, resulting in a $341 monthly payment. This was the second lowest interest rate offered to me through each of my four findings, that alone is a solid reasoning in my choice to accept this loan. Also, although the financing deals from both Light Steam Loans and USAA have significantly lower monthly payments, they are both 60-month payment plans instead of the 48-month payment plan that was offered through my loan of choice. If I were to choose either of the two options with lower monthly payments, I would spend an additional year making monthly car payments then I would with my loan of choice. While that may not sound like a long time to some people, I personally prefer to pay things off as quickly as possible within reason. With that being said, you may wonrder why I did not choose the first loan option displayed in my chart. This option also came from PenFed credit union but offered an interest rate of 2.49%, a loan payment period