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Name:______________________________ Date:___________________ Mods:_____________My Car AssignmentDirections: Over the next few days, you will be buying your first car. Most people assume that the sticker price is the actual amount a car costs, but this is not the case! There are many other factors that go into the true cost of a car. Follow the steps on this worksheet to complete the assignment.When buying a car, most people cannot afford to buy it for the sticker price. Usually, people take out a car loan. Buyers will pay an initial payment (down payment) on the car that will be paid to the car dealer. The rest of the money will be financed from a car loan. For the sake of this assignment, here are your rules.Your maximum down payment is $2,000Your maximum financing is $38,000So, your maximum sticker price is $40,000Cars need gas in order to operate, so it is essential to recognize the price of gas in the Clinton area at this time. For this assignment, refer to the following for gasThe average person travels 15,000 miles per yearThe current price of gas is…Regular- _______________________Plus- _________________________Premium- ______________________You are now ready to buy your car! Follow the steps below in order to complete the assignment!Step 1: Income Go back to your Career Wiki Page. Find your career: ________________________Using an internet search, find your starting salary: _________________________We have learned you lose roughly 35% of money from your taxes. Take your starting salary and multiply it by .65: $_________________________Divide that number by 12 (months in a year) and write that number here: $___________This is how much money you have per month for all expenses. A car loan counts as one of these expenses!Step 2: Find a Car!My car is…Make (ex. Ford): _________________Model (ex. Focus): ________________Year (ex. 2013): _________________Color (ex. blue): _________________New or used: __________________Step 3: Can you afford the car? The sticker/list price: $________________If I put $2,000 down, I will borrow/finance: $__________________When you borrow money from a financial institution, you will ultimately pay interest. Keep this in mind considering your monthly income!!!!FINANCING OPTIONS- Calculate by clicking the AUTOLOAN calculator at HINT: YOU SHOULD CALCULATE ALL OPTIONS AND SEE WHAT YOU CAN AFFORD BEFORE SETTLING DOWN ON A LOAN!!**Short loan – higher monthly payments, but you pay less total interest**Long loan – lower monthly payments, but you pay more total interestFinancing: what will the loan to purchase this vehicle cost you? Use the interest rates below which represent NJ averages. Circle which loan (36 mo., 48 mo. or 60 mo. that you think you will ask for)36 month (new car) = 3.49%36 month (used car) = 4.86%48 month (new) = 3.75%48 month (used) = 4.95%60 month (new) = 3.75%60 month (used) = 6.45%My monthly payment would be $_________________________ for ____________________ months.The total amount I would pay after _______________ months is $__________________. How much total interest will you pay (Total payments-amount financed)? $_____________________Step 4: Other ExpensesThere are many other expenses that go with the car.GASOLINE: What is the Highway MPG? _______________What is the city MPG for your car? _______________The average person drives a vehicle a 15,000 miles per year.45% (6750 miles) on the highway and 55% (8250 miles) in-city travel. If gas is currently $________________ per gallon, calculate the total cost for fuel for this car per year.Gallons needed for highway driving $_____________________Gallons needed for City driving $________________________Total Gallons Needed: $__________________________Total Cost of Gas per year: $_______________________Total Cost of Gas per month: $_______________________CAR INSURANCEIn order to drive in NJ, you need to be insured in case anything happens.For males, you will pay $200 per month. Females will pay $150 per month.Car Insurance = $______________________ per monthMAINTANENCEREMEMBER you want your vehicle to last you for more than just one year!What costs haven’t we considered? Find out by entering the make, model, year and style at the following website – are the total costs in taxes and fees for 5 years? $________________What are the total maintenance costs for 5 years? $________________ What are the total costs for repairs for 5 years? $________________So how much does it actually cost to own your car???Add the following numbers together…Down Payment: $_____________________Total Financing Payment (including interest: $_____________________Gasoline Expenses (total cost of gasoline x 5): $_____________________Car Insurance (monthly payment x 60): $_____________________Estimated taxes: $_________________Estimated maintenance: $_______________________TOTAL PRICE TO OWN CARE FOR 5 YEARS…$___________________________ ................
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