Jordan has been saving up for a car and is ready to make a purchase. After researching and budgeting, jordan decides to put a substantial down payment on the vehicle. The car dealership is eager to sell because the down payment provides quick cash and reduces their risk. How does the decision to make a down payment benefit jordan’s financial situation?
A. It reduces the loan amount and the monthly payments.
B. It guarantees a higher price if the car is resold.
C. It increases the interest rate offered by the dealership.
D. It ensures the return of the down payment when the loan is fully paid off.