Economics: Buying A Car, Due Thursday, February 17

Economics
Buying a New Car
200 Points

Buying a motor vehicle involves numerous costs beyond the purchase price. Choose a new car or truck and estimate how much it would cost to get it on the road.

Part A

1. Go online to find the cost of a vehicle with all the options you want (pick a vehicle).

2. Go to Autotrader.com

3. Select a car by customizing it based on your preferences.

4. Calculate your monthly payments using the following information:

                a)  Interest Rate (APR):  6%, 8%, 9%
                b) Length of Loan:  36 month, 48 months, 60 months
                c) Down Payment:   $1,000, $2,000, $3,000
                d) Trade-in value:   $0
                e) Amount Owed on Trade-in:  $0

Part B

1. Select a car that you would realistically buy today given your resources. Follow the instructions above.

2. If you realistically cannot put a down payment on the car (c), put it at $0. Be realistic here.

3. If you have a trade in car, put in this information.

Part C

1. Research the sales tax in this area for your chosen vehicle (Part B)

2. Research the title fee, registration and license plates (Part B)

3. Go online to Geico, Esurance, or Progressive to get an insurance quote for your vehicle (Part B)