The correct answer is A.) A down payment, because it reduces the amount financed.
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Answer:
a. A down payment, because it reduces the amount financed.
Step-by-step explanation:
When a car dealership offers you an amount for trade-in on your car, this amount is taken off of the price of the new car. This means you finance less after the trade-in than you would have before.
This has the same effect as making a down payment; it lessens the amount you finance.
