Price of the car is $1000
1. Write your name under the Purchaser's Name part of the contract. You do not need to fill out the address information. 2. For the car you selected, write the year, make, model, and MSRP in the Vehicle Being Purchased box in the left side of the contract 3. [1 pt] Suppose you are able to negotiate a selling price of 95% of the MSRP Write the selling price into the Selling Price line of the contract. You may carry this value down to the Price After Equipment Change line 4. Assume you have no trade-in. Write your selling price in the Taxable Total line of the contract Cal culate the sales tax and write this amount in the Sales Tax line of the contract. In the state of Arizona, the tax rate is different depending on where you purchase your car. Currently the Arizona sales tax rate is 5.6%. Maricopa County adds on 0.7% sales tax to support roads and jails. Phoenix has a city tax of 2.3%. That's a total of 8.6% if you purchase your car in the city of Phoenix. Assume we're buying the car in the city of Phoenix, so use the 8.6% sales tax rate The license fee is 2.8% of the value of your car. The value of your car is 60% of the MSRP (not the purchase price!). Write the license fee in the License Fee line of the contract Ex: If the MSRP is $25,000, the value of your car would be: $25,000 x 0.60 Use this value to calculate the license fee. This value is NOT your license fee 5. [1 pt] 6. [1 pt] $15,000 7. Add the title service fee, license fee, sales tax, and purchase price to obtain the total due. Write this amount in the Total Due line of the contract 8. [1 pt] You plan to make a 10% down payment. Write your down payment in the Total Cash Down box. 9. Calculate the balance due and write this value in the Balance Due line of the contract. Now we will move on to the financing. Einancing: Write the financing information under the FEDERAL TRUTH-IN-LENDING DISCLOSURES part of the contract 10. Indicate the amount borrowed (balance due) in the Amount Financed box 11. Assume you can secure a loan at 3.9% for 36 months. Write these values in the Annual Percentage Rate and Number of Payments boxes. 12. [5 pts] Calculate your monthly payment and write this value in the Amount of Payments box. 13. [2 pts] Find the total amount of interest paid during the loan and write the appropriate information in the Total of Payments and Total Finance Charge boxes. You determine that this monthly payment is too much. On the back of your contract complete the second contract using the values from Steps 1-10. 14. Next, you consider a loan at 3.9% for 72 months. Write these values in the Annual Percentage Rate and Number of Payments boxes. 15. [5 pts] Calculate your monthly payment and write this value in the Amount of Payments box. 16. [2 pts] Find the total amount of interest paid during the loan and write the appropriate information in the Total of Payments and Total Finance Charge boxes 17. [2 pts] How much more do you pay in interest with the 72 month loan compared to the 36 month loan? | Steps 14-16* 3.9% for 72 months Purchaser's Name Vehicle Being Purchased Address Model Year Make City State ZIP Vehicle Identification Number SELLING PRICE Dealer Installed Accessories MSRP Vehicle Being Traded-In Make Year Model Vehicle Identification Number KBB Value PRICE AFTER EQUIPMENT CHANGE FACTORY WARRANTY: Any warranty on any new vehicle or used vehicle still subject to a manufacturer's warranty is that made by the manufacturer only. The seller hereby disclaims all warranties either express or implied, including any implied warranty or merchantability or fitness for a particular purpose. LESS TRADE ALLOWANCE TAXABLE TOTAL FEDERAL TRUTH-IN-LENDING DISCLOSURES SALES TAX Annual Percentage Amount Financed Number of LICENSE FEE Payments Rate TITLE SERVICE FEE 299 00 Amount of Payments Total of Payments Total Finance TOTAL DUE Charge TOTAL CASH DOWN The information you see on the window form for this vehicle is part of this contract. Information n the window form overrides any BALANCE DUE contrar nrovisions in the contract of sale. 3.9% for 36 months Steps 1-13 Purchaser's Name Vehicle Being Purchased Address Year Make Model City State ZIP Vehicle Identification Number SELLING PRICE MSRP Dealer Installed Accessories Vehicle Being Traded-In Year Make Model Vehicle Identification Number KBB Value PRICE AFTER EQUIPMENT CHANGE FACTORY WARRANTY: Any warranty on any new vehicle or used vehicle still subject to a manufacturer's warranty is that made by the manufacturer only. The seller hereby disclaims all warranties, either express or implied, including any implied warranty or merchantability or fitness for a particular purpose LESS TRADE ALLOWANCE TAXABLE TOTAL FEDERAL TRUTH-IN-LENDING DISCLOSURES SALES TAX Number of Payments Annual Percentage Amount Financed LICENSE FEE Rate TITLE SERVICE FEE 299 00 Total Finance Charge Amount of Payments Total of Payments TOTAL DUE TOTAL CASH DOWN 1. Write your name under the Purchaser's Name part of the contract. You do not need to fill out the address information. 2. For the car you selected, write the year, make, model, and MSRP in the Vehicle Being Purchased box in the left side of the contract 3. [1 pt] Suppose you are able to negotiate a selling price of 95% of the MSRP Write the selling price into the Selling Price line of the contract. You may carry this value down to the Price After Equipment Change line 4. Assume you have no trade-in. Write your selling price in the Taxable Total line of the contract Cal culate the sales tax and write this amount in the Sales Tax line of the contract. In the state of Arizona, the tax rate is different depending on where you purchase your car. Currently the Arizona sales tax rate is 5.6%. Maricopa County adds on 0.7% sales tax to support roads and jails. Phoenix has a city tax of 2.3%. That's a total of 8.6% if you purchase your car in the city of Phoenix. Assume we're buying the car in the city of Phoenix, so use the 8.6% sales tax rate The license fee is 2.8% of the value of your car. The value of your car is 60% of the MSRP (not the purchase price!). Write the license fee in the License Fee line of the contract Ex: If the MSRP is $25,000, the value of your car would be: $25,000 x 0.60 Use this value to calculate the license fee. This value is NOT your license fee 5. [1 pt] 6. [1 pt] $15,000 7. Add the title service fee, license fee, sales tax, and purchase price to obtain the total due. Write this amount in the Total Due line of the contract 8. [1 pt] You plan to make a 10% down payment. Write your down payment in the Total Cash Down box. 9. Calculate the balance due and write this value in the Balance Due line of the contract. Now we will move on to the financing. Einancing: Write the financing information under the FEDERAL TRUTH-IN-LENDING DISCLOSURES part of the contract 10. Indicate the amount borrowed (balance due) in the Amount Financed box 11. Assume you can secure a loan at 3.9% for 36 months. Write these values in the Annual Percentage Rate and Number of Payments boxes. 12. [5 pts] Calculate your monthly payment and write this value in the Amount of Payments box. 13. [2 pts] Find the total amount of interest paid during the loan and write the appropriate information in the Total of Payments and Total Finance Charge boxes. You determine that this monthly payment is too much. On the back of your contract complete the second contract using the values from Steps 1-10. 14. Next, you consider a loan at 3.9% for 72 months. Write these values in the Annual Percentage Rate and Number of Payments boxes. 15. [5 pts] Calculate your monthly payment and write this value in the Amount of Payments box. 16. [2 pts] Find the total amount of interest paid during the loan and write the appropriate information in the Total of Payments and Total Finance Charge boxes 17. [2 pts] How much more do you pay in interest with the 72 month loan compared to the 36 month loan? | Steps 14-16* 3.9% for 72 months Purchaser's Name Vehicle Being Purchased Address Model Year Make City State ZIP Vehicle Identification Number SELLING PRICE Dealer Installed Accessories MSRP Vehicle Being Traded-In Make Year Model Vehicle Identification Number KBB Value PRICE AFTER EQUIPMENT CHANGE FACTORY WARRANTY: Any warranty on any new vehicle or used vehicle still subject to a manufacturer's warranty is that made by the manufacturer only. The seller hereby disclaims all warranties either express or implied, including any implied warranty or merchantability or fitness for a particular purpose. LESS TRADE ALLOWANCE TAXABLE TOTAL FEDERAL TRUTH-IN-LENDING DISCLOSURES SALES TAX Annual Percentage Amount Financed Number of LICENSE FEE Payments Rate TITLE SERVICE FEE 299 00 Amount of Payments Total of Payments Total Finance TOTAL DUE Charge TOTAL CASH DOWN The information you see on the window form for this vehicle is part of this contract. Information n the window form overrides any BALANCE DUE contrar nrovisions in the contract of sale. 3.9% for 36 months Steps 1-13 Purchaser's Name Vehicle Being Purchased Address Year Make Model City State ZIP Vehicle Identification Number SELLING PRICE MSRP Dealer Installed Accessories Vehicle Being Traded-In Year Make Model Vehicle Identification Number KBB Value PRICE AFTER EQUIPMENT CHANGE FACTORY WARRANTY: Any warranty on any new vehicle or used vehicle still subject to a manufacturer's warranty is that made by the manufacturer only. The seller hereby disclaims all warranties, either express or implied, including any implied warranty or merchantability or fitness for a particular purpose LESS TRADE ALLOWANCE TAXABLE TOTAL FEDERAL TRUTH-IN-LENDING DISCLOSURES SALES TAX Number of Payments Annual Percentage Amount Financed LICENSE FEE Rate TITLE SERVICE FEE 299 00 Total Finance Charge Amount of Payments Total of Payments TOTAL DUE TOTAL CASH DOWN
