Suppose Malcom Makes A Down Payment When He Applies For A Car Loan. Which Statement Is True?

 If Malcolm makes a down payment when he applies for a car loan, the following statement is true:

  1. The Size of the Loan is Reduced: Making a down payment reduces the amount of money Malcolm needs to borrow from the lender. This means that he will need to finance a smaller portion of the car's purchase price with the loan, resulting in a lower loan amount.

Down payments are typically paid upfront at the time of purchase and are deducted from the total purchase price of the car. By making a down payment, Malcolm reduces the lender's risk, as he has more equity in the car from the outset. This can lead to more favorable loan terms, such as lower interest rates or shorter loan terms, and may increase the likelihood of loan approval.

Overall, making a down payment is a common practice when financing a car purchase and can help borrowers save money on interest and reduce their overall debt burden

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