Download car buying project

CAR BUYING PROJECT
A. Vehicle You Wish To Sell
Research the vehicle you currently drive (if you do not drive, research one of your parent’s cars
or a friend’s car).
1. Make, Model and Year of your vehicle
Year:
Make:
Model:
Odometer Reading: _______________
VIN #:
2. KBB Trade In Value
3. KBB Private Party Value
4. KBB Suggested Retail Value
5. Lemon Check
http://www.carfax.com/cfm/general_check.cfm?partner=car_8
6. Consumer Ratings
Overall Rating:
Total # of Ratings Posted:
B. Vehicle You’d Like to Purchase
Scenario: You are a single, 23 yr old. You just landed your first decent job that pays you a
yearly net take home pay of $24,000. You are not seriously dating anyone and there are no
parents or children you have to support.
1. Figure out how much of a car you can afford by going to : http://www.carprice.com/. Scroll
down to the “Car Financing Area”. Allow yourself a $1000 down payment. In addition, figure
in the amount you will get for your trade in. (You can trade it in or sell it on your own. Use the
appropriate figure from the first sheet in your calculation.)
a. Estimate What You Think You Can Afford:
b.
-Down Payment
c.
-Trade In
d.
= How much do you need to take out for a loan?
e. APR_________________ Circle Term of Loan (24/36/48/60 mo)
f. Estimated Monthly Loan Payment?
CAR BUYING PROJECT (continued)
Auto Costs Rule of Thumb: 20% of monthly net take home pay (includes car payment,
insurance, (assume $100) gas, (assume $75) maintenance (assume $15))
g. 20% of net monthly take home pay?
h. Estimated Monthly Loan Payment?
i. + Monthly Cost for Insurance, Gas, + Maintenance:
j.
= Total monthly automobile cost:
Are you within 20% of your monthly net take home pay?
Yes
No
(If you checked No, go back and recalculate this section!)
2. What is your Target Price you are willing to pay
3. For this exercise, choose a NEW vehicle. Go to: Cars.com.
What vehicle did you choose?
Cost of the vehicle?
Find the invoice price:
4. Check the fuel economy (MPG) of your vehicle.
5. Figure the actual cost of your car by going to : http://www.carprice.com/. Scroll down to
the “Car Financing Area”. Allow yourself a $1000 down payment. In addition, figure in
the amount you will get for your trade in. (You can trade it in or sell it on your own. Use
the appropriate figure from the first sheet in your calculation.)
a. Cost of Vehicle:
b.
-Down Payment
c.
-Trade In
d.
= How much will you need to finance?
e. APR_________________ Term of Loan (24/36/48/60 mo)
f. What’s your monthly Loan Payment?