Question of the Day

Behavioral Finance #21

When it comes to the cost of a car, research shows that most consumers focus on the ___________ payment during the car buying process.

Question of the Day

Behavioral Finance #22

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Monthly payment

Follow Up Questions

1. Do you think the monthly payment captures how much the car will cost you? What else do you need to know to calculate the total cost?
2. Why do you think that most consumers focus on the monthly payment instead of the overall cost of the car?
3. When you stretch out the term of an auto loan (e.g., from 4 years to 7 years), what happens to the monthly payment? total interest paid on the loan?

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