You are going to 'Buy' a new car



Taylor BelkYou are going to "Buy" a new car (not used). You will go through the entire process from choosing a car, getting rid of your old car, researching your decision, and closing the sale.Your budget(10-15% of monthly income) is $______________Highlight each of the following in a different color if it is extremely important to you in your car purchase. Auto Transmission2 door 4 doorGas EfficiencyCargo CapacitySeating CapacityTowing CapacityLeather SeatsPower SeatHeated SeatsEngine Size Anti-lock BrakesCruise ControlAir ConditioningRemote Keyless StartRear Wheel DriveFront Wheel DriveFour-Wheel DriveCD PlayerMP3Integrated Bluetooth Phone Navigation SystemDVD SystemAlloy WheelsDual AirbagsSide Curtain AirbagsAnti-theft SystemSun Roof/Moon RoofPower Exterior MirrorsWarrantyAdd other important options here:Find two cars that are within your budget, and meet all or most of your important features listed above. They should be the same TYPE of car, made by competing companies! I suggest using Car #1 Range Rover Sport (supercharged)Car #2 Audi Q7Based on your own personal preferences, which of these two cars would you buy? Why?Range Rover it has more of the amenities that I wanted.Read at least 5 reviews found online for each car. Reviews are written by people who already own the car or by expert car reviewers. Find at least 5 of these types of reviews for each of your two cars. Write a short reflection based on what you read in the reviews below: (Don't make your decision yet, you still have some number crunching to do.) Good Website: -click on Car Reviews at the top and choose consumer reviews. Audi- This car seems very nice. It has very good gas mileage. It drives very smooth. There is a lot of cargo space. It has Quattro AWD, electronic stability control with roll-over mitigation.Range Rover- It’s a comfortable and responsive. Great off-roading. Boldest and hottest looking SUV. It has automatic parallel parking. Based only on what you read in the product reviews, which of the two cars would you buy? Why?I would buy the Audi Q7 because it was more reliable. There is more room in the back for cargo. It has better gas mileage. The Range Rover was nice it just wasn’t dependable. Use to find the answers to the following questions about the two cars you have chosen to compare. Click on the Car Values link at the top and choose What Should I Pay For a New Car. Look up your two cars. Choose the newest year, the correct style, and the options you would like.What is the Fair Purchase Price including options? Car #1 $87,054 Car #2 $63,316Now take the Fair Purchase Price times 5% state sales tax. Use the formula at the right to find these figures.-22860023495Cost of Car #1 to you$91,40600Cost of Car #1 to you$91,406171450023495Cost of Car #2 to you$66,48100Cost of Car #2 to you$66,481Fair Purchase price x 1.05 sales taxCost of Car to youYou will follow the instructions on the next page to find out how much you will spend TOTAL on owning this vehicle over the next 5 years.Click on the link on the left side of the screen that says 5-Year-Cost-to-Own.Customize the Car’s 5-Year-Cost-to-Own, by imputing your average miles driven per year. For example, I drive only about 10,000 miles per year. Set the % APR at 5% for 60 months with a $0 down payment.What is the 5-Year-Cost-to-Own?Car #1 $103,758 Car #2 $79,725What is your old car? Year 2005 Make Nissan Model Altima Mileage: 100,000 milesExplain the condition of your old car:Good condition, small dent on side bumperLet's assume that your old car is paid off. Use (click on Car Values tab at top, and choose What’s My Current Car Worth?) to find the following answers. Find out how much it is worth for trade in $5,831 Find out how much it is worth if you attempt to sell it yourself (private-party value) $7,787From the previous page, take the cost of each car to you, and deduct the amount of your trade in to find out how much you will owe on each car. 2286000160020Cost of Car to You Minus Trade in for Car #2$58,69400Cost of Car to You Minus Trade in for Car #2$58,6940160020Cost of Car to You Minus Trade in for Car #1$83,61900Cost of Car to You Minus Trade in for Car #1$83,619Based on Fair Cost only, which of the two cars would you buy? Why? I would buy the Audi because it is basically the same car just different brands. The Audi is a lot cheaper than the Range Rover. Now, let's assume that you are going to get financing to pay for the balance, and you have no money to put down. You are able to obtain financing at 5% APR. Use any auto loan calculator (I like using the What Would My Auto Payments Be? Calculator) to find out how much your payments would be on each car over each period of time:# of PaymentsAfter Trade-In Payment amount of Car #1After Trade-In Payment amount of Car #224$3,668$2,57536$2,506$1,75948$1,926$1,35260$1,578$1,10872$1,347$945Which car do you choose based solely on monthly payments?I would choose the Audi because it is a lot less than the price for a Range Rover.How many payments are you able/willing to make on this car?I am willing to pay 48 payments for the Audi.Considering personal preference, price, 5-year-cost-to-own, monthly payments, and product reviews, which car do you choose to buy? Why?I choose the Audi because it is more reliable and is not going to have as many problems. It is also a lot cheaper than the Range Rover. I reviews are better for the Audi. ................
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