Name:______________________________ Date:___________________ My Car Assignment - 5 year car Directions: 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. 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. The car needs to be over $5000 so it will in theory last you five years. Your maximum down payment is $2,000 Your maximum financing is $18,000 So, your maximum sticker price is $20,000 Cars need gas in order to operate, so it is essential to recognize the price of gas. The current price of gas is... Today's Date:_________________________ o Regular- _______________________ o Premium- ______________________ You are now ready to buy your car! Follow the steps below in order to complete the assignment! Step 1: Find a Car! Where did you buy your car from?______________________ My car is... o Make (ex. Ford): _________________ o Model (ex. Focus): ________________ o Year (ex. 2013): _________________ o Color (ex. blue): _________________ o New or used: __________________ o Current Kilometers: __________________ Step 2: How much will the car cost you to finance? http://www.thecalculatorsite.com/finance/calculators/carloancalculator.php 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. FINANCING OPTIONS o **Short loan - higher monthly payments, but you pay less total interest o **Long loan - lower monthly payments, but you pay more total interest Financing: what will the loan to purchase this vehicle cost you What is the Current Interest Rate: ___________ How many years did you pick? ___________ If you picked 5 years that is 60 months. 4 years is 48 months. 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 3: Other Expenses There are many other expenses that go with the car. https://www.calculator.net/fuel-cost-calculator.html GASOLINE: o The average person drives a vehicle a 30,000 km per year. o If gas is currently $________________ per litre, calculate the total cost for fuel for this car per year. Use the average of 8.9 litres of gas per 100 km's. Put in the Trip Distance as 30, 000 km Total Litres Needed: __________________________ Total Cost of Gas per year: $_______________________ Now divide the total by 12 to get total Cost of Gas per month: $__________________ CAR INSURANCE o For males, you will pay $250 per month. Females will pay $200 per month. o Car Insurance = $______________________ per month MAINTANENCE So how much does it actually cost to own your car??? You will either need one set of winter tires (legally have to have in BC in winter) and one set of summer tires over 5 years. Tires - Winter Tires = $______________________ Tires - Summer Tires = $______________________ Or have two sets of all season tires over 5 years. Tires - All Season= $______________________x 2 = __________________ Oil Changes (average of $100) x 3 per year = $______________________ Total of Oil Changes for 5 years x the above number = ____________________ Add the following numbers together... o Total Financing Payment (including interest and down payment): $________________ o Gasoline Expenses (total cost of gasoline x 5 years): $_____________________ o Maintenance Cost over 5 years (tires & oil changes) : $__________________ o Car Insurance (monthly payment x 60): $_____________________ TOTAL PRICE TO OWN THE CAR FOR 5 YEARS o $___________________________