Mr. Farshtey's Classroom
CAR BUYING ACTIVITYName _________________________The purpose of this assignment is to give us a more realistic car buying experience your chance to experience the car buying process without actually spending a dime!STEP 1 – PURCHASE INFORMATIONSelect one of the vehicles you researched.Year: Make: Model:BASIC CAR PRICE: _____________________________LICENSE FEE: (10% of Basic Car Price) _____________________________TOTAL CAR COST: (basic price + license fee) ______________________________STEP 2 – LOAN INFORMATIONOnce you have found the automobile of your choice and have determined the amount you will be spending on the car, you need to calculate the monthly payments. Go to AMOUNT – Enter your TOTAL CAR COST listed aboveDOWN PAYMENT: The amount of your own money you pay upfront for the vehicle (includes the value of your possible trade-in). It is recommended that you make a 10% to 20% down payment. The larger the down payment you are able to make, the less principal you will need to borrow.LOAN TERM / ANNUAL INTEREST RATE - Calculate the monthly payment for your car for each term option in the chart on the next page (3, 5, and 6 years). Choose the credit rating that you think you would receive based on our discussions in class. (most likely = Average Credit) Terms Excellent Credit Good CreditAverage CreditFair Credit3 years (36 payments)5.99%7.14%7.54%8.14%5 years (60 payments)6.35%7.69%8.24%9.30%6 years (72 months)6.89%8.64%9.44%10.40%Your findings for each loan option should be presented as follows, so you will be calculating this information three times:CHECK THE “Explain Calculations” BOX AND IT WILL DOJUST ABOUT ALL THE WORK FOR YOU. TERM – 3 years TERM – 5 years TERM – 6 yearsLoan Amount _________ __________________Interest Rate _________ __________________MonthlyPayment _________ __________________Total Cost Of Loan _________ __________________(monthly payments X # of payments) What would be your best loan option? 3 years ____ 5 years ____ 6 years _____STEP 3 – YOUR TRUE CAR COST FOR 5 YEARSMonthly Payment (from STEP 2)____________________Go to: your carCOPY & PASTE the chart into this documentNOTE: Your insurance costs will be higher if you are a male; lower if you are an A student than a B student – and lower for B students than C studentsBOTTOM LINE: IS YOUR CAR STILL A GOOD INVESTMENT? ................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.