\-
CAR BUYING PROJECT
(counts as a TEST grade)
.?.You will choose 3 different 2010 NEW cars that you would like to purchase (all need
to be within a $10,000 base price difference) using any of the websites below.
Kelley Blue Book: www.kbb.com
Edmund's Automobile Buyer's Guide: www.edmunds.com
New Vehicles (Autoweb) : www.autoweb.cor4
Use the checklist/rubric on the next page to make sure you have completed each step
below.
l.
2.
3.
4.
5.
6.
7.
Once you determine which cars you want to buy, you will research the price and
options available for those cars. Fill out the appropriate information on
worksheet #1 in lines l, 2 and 3 for each car. You should choose atleast2
different options that cost extra.
Calculate lines 4, 5 and 6 on worksheet #1 for each car.
Once you have calculated the total cost with tax for each car, you will need to
calculate the financing/leasing costs using the chart on the Financing Costs
worksheet for each car you want to purchase.
Use the price per year calculated (from the Financing Costs worksheets) for each
car and fill out the information on worksheet #1 in line 7 under the appropriate
column for each car.
Next step is to calculate the maintenance costs (see routine maintenance costs
worksheet), registration costs (see registration costs worksheet) and fuel costs
(see fuel costs worksheet). Then fill out the appropriate information on
worksheet #1 in lines 8, 9 and 10.
Now, calculate the total cost to purchase each car per year (Grand Total row on
worksheet #1) and fill in your answer on line 11 on worksheet #1.
Decide which of the three cars you researched is the car you would buy. Write a
few sentences explaining which car you would buy and your reasons. Write the
answer on the bottom of this page.
C}IECKLI ST/POINT SYSTEM :
Printout from car buying website showing base price of each c&t (2 pts per car)
Correctly fill out base price and options for each car on worksheet#1 (t pt per car)
Correctly compute total price (with options) for each car on worksheet #l 1z pts p",
car)
Correctly compute 60Z sales tax for each car on worksheet#l Q pts per car)
Correctly compute total price (with options & tax) for each car on worksheet #1
(2 pts
per car)
Financing Costs worksheet for each car
Correctly record total price on each aat (l pt per car)
Show how to compute 10% down on each e&t (2 pts per car)
Correctly compute 10% down on each car Q ptper car)
Show how to compute amount financed on each Q&t (2 pts per car)
Correctly compute amount financed on each Q&r (1 ptper car)
Correctly determine total monthly payment for each car (1 pt per car)
Show how to compute price per yeaf to purchase each ca;t (2 pts per car)
Correctly compute price per year to purchase each Q&t (I pt per car)
Correctly fiIl out financing costs (ytly) for each car on worksheet#7 (t ptper carl
Show how to compute car maintenance costs for each year on routine
maintenance costs worksheet ft pts)
Correctly compute car maintenance costs chart on routine maintenance costs
worksheet @ pts)
Printout showing average mpg (in city) of each car Q pts per car)
Show how to compute fuel costs for each set of miles for each car on fuel costs
worksheet @ pts per car)
Correctly compute fuel costs chart for each car on fuel costs worksheet @ pts per car)
Show how to compute registration costs for each car on registration costs
worksheet Q pts per car)
Correctly compute registration costs for each car on registration costs worksheet
(1 pt
per cqr)
Correctly fill out routine maintenance costs (using yeat 4) for each car on
worksheet #1 1t pt per car)
Correctly fill out fuel costs (based on 15,000 miles) for each car on worksheet #1
(1 pt
per car)
Correctly fill out registration costs (ytly) for each car on worksheet #I f t pt per car)
Correctly fill out Grand Total (yrly) for each car on worksheet #1 (t pt per carl
Write a few sentences explaining which car you would buy and your reasofls (3 pts)
TOTAL POSSIBLE POINTS : 125
x (-2) :
TOTAL # DAYS LATE :
TOTAL POINTS EARNED:
***NOTE: You will lose 2 points per dayfor each day each part of the project is handed in
late.***
WORIGHEET
CAR A
1.
CAR MODEL
2. BASE PRICE
(CIRCLE: MSRP/LIST OR INVOICE)
3. OPTIONS (List options below &
prices in the columns at the right)
4. TOTAL PRICE (wiln
5.6%
"pii"rO
sales tax
6. TOTAL PRICE (with tax)
7.
FINANCING (Price peryear)
ROUTINE MAINTENANCE
COSTS PER YEAR (use year 4)
9. FUEL COSTS (based on 15,000 per
year) PER YEAR
8.
10.
REGISTRATION
cosrS Cv.tvl
11. GRAI\D TOTAL (Yrly) =
line 7 + line 8 + line 9 + line 10
#1
CAR B
CAR C
Based on the car you chose on workshe et #l , frll in the table below. MIKE sunB voa SHow woRx
ONTHIS SHEET FORTHOSE ITEMS MARKED WITHAN *.
CAR A
Total Price (from line 6 of worksheet
*l0o
#l)
:
down payment:
*Amount financed (total price minus down payment)
:
Monthly payment (based on purchase price after l0o/o down and 48
monlhs @ 4.55%):
(use wv,w.bankrate.com auto loan calculator
- see below)
*Amount you pay pery.ea.r:
Put the answet you getfor price per year into the appropriatefinancing costs column in
worksheet #1.
How to use wwrv.bankrate.com to determine the monthly payment:
I.
2.
3.
4.
5.
6.
7.
8.
Go to wrvw. b ankrate.com/cal culators/auto/auto-loan -calcul ator.aspx.
Type in the Amount Financed (calculated in the table above) into the box next to "Auto Loan Amounf',
In the box next to "Auto Loan Term", Wpe "4" next to years then tab to the next ce ll and "48" should appear in the box
next to months.
In the box next to "Interest Rate", type "4.55".
Do not change the start date.
Click "calculate".
Find the monthly payment that will appear after you click "calculate".
This is the amount that you will pay every month for 48 months. Record this number in the table above in the Monthly
payment box.
Financins Costs worksheet
Based on the ca"r you chose on worksheet#1, fill in the table below. M,qxn suna Yoa
oN rnts snnnr ronrnoss nspts uanrno wtrn,qN *.
saow woRK
CAR B
Total Price (from line 6 of worksheet #1)
:
*I}Yo down payment:
*Amount financed (total price minus down payment)
:
Monthly payment (based on purchase price after l0o/o down and 48
months @ 4.55%):
(use www.bank:rale.com auto loan calculator
-
see below)
*Amount you pay pg1Jga.r:
Put the answer you getfor price per year into the appropriateJinancing costs column in
worksheet #1.
How to use www.bankrate.com to determine the monthly payment:
l.
2.
3.
4.
5.
6.
.
8.
7
Go to rvwrv.bankrate.com/calculatorsiauto/auto-loan-calculator.aspr.
Type in the Amount Financed (calculated in the table above) into the box next to "Auto Loan Amounfo,
In the box next to "Auto Loan Term", type "4" next to years then tab to the next cell and "48" should appear in the box
next to months.
tn the box next to "Interest Rate", type "4.55".
Do not change the start date.
Click "calculate".
Find the monthly payment that will appear after you click "calculate".
This is the amount that you will pay every month for 48 months. Record this number in the table above in the Monthly
payment box.
Financins Costs worksheet
Based on the car you chose on worksheet#7, fill in the table below. M,qra sunn voa
ow ruts sunnr ron ruosn rcnas a,qnKEn wrrn atv *.
suow wonx
CAR C
Total Price (from line 6 of worksheet #1)
*l0o
:
down payment:
*Amount financed (total price minus down payment)
:
Monthly payment (based on purchase price after l0o/o down and 48
months @
4.55%):
(use v,ww.banlvate.com auto loan calculator
*
see below)
*Amount you pay peIJeaI:
Put the answer you getfor price per year into the appropriateJinancing costs column in
worksheet #1.
How to use r,vww.bankrate.com to determine the monthly payment:
1.
2.
3.
4.
5.
6.
7.
8.
Go to r'vww.bankrate.com/calculators/auto/auto-loan-calculalor.aspx.
Type in the Amount Financed (calculated in the table above) into the box next to "Auto Loan Amounfo,
In the box next to "Auto Loan Term", type "4" next to years then tab to the next cell and "48" should appear in the box
next to months.
In the box next to "Interest Rate", type "4.55".
Do not change the start date.
Click "calculate".
Find the monthly payment that will appear after you click "calculate".
This is the amount that you will pay every month for 48 months. Record this number in the table above in the Monthly
payment box.
ROUTINE MAINTENANCE COSTS
Maintenance costs for new cars are approximately $100 per year. This charge includes oil/filter
changes, lubrication, and adjustments. However, as cars become older maintenance costs increase.
If maintenance costs increase by 150% for each year beyond the first year in service, determine
the maintenance cost for each year in the chart below. Show yoar work below the chart. Follow
the example I have shownfor year 2.
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR
AMOUNT
YEARLY
Year
1:
Year
2:
OF'INCREASE
COST
$O $150
$IOO $250
Given $0 increase
Given: Yearly cost: $100
100
100
x 1.5 : 150 (amount increased from year 1)
+ 150 : 250 (yearly cost from previous year + amount of
yearly cost during 2"d year)
Year 3:
Year 4:
Year 5:
Year 6:
6
increase in current
year:
FUEL COSTS
You have to include the cost of fuel for your car as part of the overall expense or operating costs.
First, research to find each of your cars average mpg (use city mpg). Print out the page showing
this information and circle the average mpg you are using.
Since
total miles per year
average mpg
:
total gallons needed per year, you can calculate how many gallons
you will need for each set of miles in the chart below for each car. To determine fuel costs for
each car, assume gas prices remain at approximately $2.55 per gallon. Calculate the yearly cost of
fuel for each car and each set of miles and then complete the chart below (show your work for
each set of miles below each chart).
CAR A
10,000 15,000 20,000
MILES MILES MILES
250000
MILES
# gallons needed per year
YEARLY COST
CAR B
000 15,000 20,000
MILES MILES MILES
100
25,000
MILES
# gallons needed per year
YEARLY COST
CAR C
000 15,000 200000
MILES MILES MILES
loo
# gallons needed per year
YEARLY COST
25,000
MILES
REGISTRATION COSTS
Assume the registration fee for a new car costs $50 for each $2500 the car costs. So, for example,
if a new vehicle costs $25,000 the registration fee is $500 and calculated as follows:
:
25,000 _ ,,
t0, so l0 x
2500
For a $30,000 car:
#:
50:
$500
12.08, so 12.08 x
50:
$604
Based on this information, determine the registration cost for your vehicle using the total price
with tax. Show how you anived at yoar cost in the space below.
CAR A:
CAR B:
CAR C: