How can taking out a loan assist Margo in purchasing a new car?

Taking out a loan can assist Margo in purchasing a new car by spreading out the expense over time. When Margo secures a loan, she is able to finance the cost of the car rather than paying the total amount upfront. This means that instead of facing the immediate financial burden of paying the entire price of the vehicle, she can make manageable monthly payments over the duration of the loan.

This approach allows Margo to budget her expenses more effectively, as she can align the loan repayments with her income and other financial obligations. It also gives her the opportunity to own the car and start using it right away, rather than having to save up the full amount, which could take a considerable amount of time. By distributing the cost over several months or years, loans help individuals make significant purchases while maintaining financial flexibility.