Questions: At the end of the car model year, what source of financing for a new cai would probably have the best terms? (1 point) a collateral loan from a bank a collateral loan from the car company a home equity loan revolving credit line

The answer is a collateral loan from the car company.

While banks can offer competitive rates, they may not provide the best terms compared to car companies, especially at the end of the model year when car companies are eager to clear inventory.

Car companies often offer attractive financing terms at the end of the model year to encourage sales and clear out old inventory. These terms can include lower interest rates, rebates, or special financing deals, making this option potentially the most favorable.

A home equity loan might offer a lower interest rate due to the secured nature of the loan, but it involves using your home as collateral, which can be risky. Additionally, it may not offer the same promotional terms as a car company loan at the end of the model year.

A revolving credit line, such as a credit card, typically has higher interest rates compared to other forms of financing, making it a less attractive option for purchasing a car.