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Having saved from her part-time job. Sasha responded to an ad for "Like New! OneOwner Used Cars." A salesperson for A- Used Cars watched Sasha wander around the lot until she was attracted to a bright-red compact car. Sasha told the salesperson that this car looked just right for her. He replied, "You've made a good choice. This is an excellent car. It will give you many years of good service."
Although the sticker price was , the salesperson thought that he might be able to get Sasha a discount because she was "a nice young kid getting her first car." After conferring with the sales manager, he explained to Sasha that she could have the car for and that the dealer could arrange to finance the car and sell her all the necessary auto insurance.
Sasha knew that she would need a loan and that auto insurance was required by law. Her excitement increased as it appeared that all her needs could be met in one stop. Sasha saw a sticker on the car's window indicating that this car came with a warranty. The salesperson told her that A- Used Cars would make any repairs to the engine for damage not caused by her misuse for days or miles, whichever came first. Now she felt confident about using all of her savings as a down payment. After all, what repair bills could she have with such a nice car accompanied by a terrific warranty?
What are the advantages and disadvantages to Sasha of obtaining financing and insurance from the dealer?