Finding the Right Car



Finding the Right Car

Chart 1—compare cars

Find four cars you would consider owning that cost between $3,000 and $25,000.

One must be a sub-compact, one compact, and 2 of your choice.

At least one must be a “domestic” car.

At least one must be new and at least one must be used. The oldest year of car you can research is a 2006.

You may use your own car if you have one, even if it is older than 2006.

You may not research motorcycles unless you already have a motorcycle license (you have to show me your license).

1. Gather the following information (cut and paste from the advertisement):

a. make and model, year

a. or will have a variety of cars, but you may use any site you wish (sales tax, if you buy a car from a dealership in San Diego, is 8%)

b. cost to buy the car, and the price divided by 5 (explained below)

c. you must be able to see the license plate, if you can’t see it or the car doesn’t have one, you can’t use that car!!!!!

d. Insurance per year

a. lots of places will give you a 6 month quote, double it for the year

b. You might set up a separate email address as online quotes may be emailed, and you will at least be required to submit one to get a quote

c. You must be 18, change your year of birth if necessary

d. You may use a false name (be realistic, insurance companies have algorithms that will reject obvious fakes)

e. you may use the school’s address: 10410 Treena St., 92131

f. You must print the quotes and include them with the project

i. put it on the same page you have the car information

ii. make sure the company is clearly identified

e. registration

a. get this the same day: if the car sells the dmv won’t let you get registration information (then you have to research another car)

b. dmv.

c. get to the Vehicle Registration Fee Calculator by using search

i. you will need the license plate and VIN number, so make sure you include that when you cut and paste your information (if there is no license plate you must choose another car)

ii. cut and paste the information to your car information

f. gas cost per year (based on the industry average of 13,000 per year)

a. For miles per gallon, average the city and freeway ratings

i.

ii. If you look at the listed mpg, you must lower it by 2mpg because the tests occur under ideal conditions (not realistic)

b. Divide 13K by your car’s average mpg to find out how many gallons of gas you will buy over the course of one year

c. Multiply the number of gallons by the cost of gas

d. You must use the recommended grade of gas

g. Maintenance

a. Use the cost of one month of gas, this is an approximation. It covers oil changes, replacing filters or wiper blades, and other basic car care.

h. Totals

a. Find out how much each car costs to run for one year. The purchase cost of the car will be factored in by dividing the amount by 5 (as if you are paying back a 60 month car loan from the Bank of MAD (mom and dad) and they aren’t charging you interest). In other words, you will include 20% of the purchase price of the car. To that, add the cost of insurance, registration, gas, and maintenance.

2. Create a chart on Excel (if you know how to use it) or another program that shows all the information. Use the example I created as your template. That is exactly how I want you to set it up. If you use Microsoft Word, all charts must be in Landscape format. The chart needs to be on one piece of paper. If it is not set up like the example, you will lose points.

3. Next, you will research one make/model of car and find out how much it costs to own a new car versus a used car.

Chart 2—compare cars by age

4. Choose one of the cars from chart 1 to research.

a. Using the internet to find information about that car for a current-year model, a two to four-year-old model, and a seven to ten-year-old model. If you use a car older than 10 years, it will not be graded. If the car is a new model (no models older than 5 years), you must choose another car.

b. The cars must be similarly equipped.

c. This time, include a bank/credit union loan for the new and 2-4 year old models, where you put the price in the previous charts. Next to that create a column for how much you will pay for the year. Put the purchase price below the monthly payment. Create a column for the amount of interest you will pay over the life of the loan. Put that in the second row so you don’t get confused when you add everything up.

d. To calculate your monthly payment for a 5 year/60 month loan, use . Your interest rate is 2.39%.

e. Once you have the monthly rate, multiply it by 12 to find out how much you will pay in a year.

f. Next, find out how much interest you will pay for the life of the loan. Take the yearly total, multiply it by 5 (years of the loan) and subtract the actual cost of the car.

g. For the 7 to 10-year-old car, you don’t have a loan, but older cars need more maintenance. Input $650 for maintenance.

h. Again, you need to add everything together to find out how much it costs to run the cars for a year.

You may NOT use my example on your work.

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