Comparing New to Used? Purchasing a new vehicle can greatly affect your financial situation.?You will gain a better understanding of the car-buying process a
Part 1: Comparing New to Used
Purchasing a new vehicle can greatly affect your financial situation. You will gain a better understanding of the car-buying process and the components that affect your monthly payments. You will compare the costs of buying a new vehicle and a used vehicle in the same model.
Directions: Download the above document and answer the questions in the document for Part 1 and Part 2.
Here are some pointers to help you:
Part 1
- Is there a new car or truck you’ve dreamed about owning? Now is your chance to see how much it would cost.
- First, choose a car or truck, then build and price a new model. Copy and paste info on the vehicle you’ve built to include with your project
- Next, look at used vehicles between 2-5 years old of the same make and model. You may look for used vehicles from local dealers, Autotrader, etc.
- Copy and paste info and pictures on the used vehicle to include in your project
- You will use this Car Loan Calculator to calculate payments. After gathering info, answer the questions on the attached document using the prices found for your new and used vehicles car Loan Calculator
- Assume you have no trade-in and no sales tax
- In a short reflection below your questions, answer the following questions have you purchased a vehicle before? If so, do you have any regrets about your experience?
- After this activity, do you feel more confident and informed about buying a vehicle?
- Now that you have completed this activity if you were shopping for a vehicle, would you choose to buy a new or used one? Explain why.
Part 2: Comparing Hybrid to Regular
Question:
Is it worth buying a Hyundai Sonata hybrid instead of the regular Hyundai Sonata?
Download the above document and answer on those sheets. Then upload.
To answer this question we will break it down.
1) What are some of the factors to consider? List at least 3.
2) Focus on the cost of fuel.
3) What is the percent decrease in the gas cost for the hybrid?
4) Research and discuss the starting prices for each vehicle.
5) To better answer the “is it worth it” question, how long it will the gas savings make up for the additional initial cost?
6) Discuss the pros and cons of each vehicle.
PART 1: Comparing a new and used model.
1. Build and price a new car of your choice: Purchase Price = __________________
a. Info on my vehicle including website, pictures, make, model, etc.
b. Calculate your monthly payment for a 5-year loan with a $5000 down payment and 4.3% APR.
c. What happens to your payment if you decrease the loan term to 3 years?
d. You lost your savings and you can no longer afford to put a down payment on the car. The day worsens when the dealership informs you that your credit rating is less than ideal, and your expected APR is 17%. How does this affect your monthly payment for a 5-year loan?
e. Using the monthly payment from Part C, calculate the total amount you will pay for the car over the life of the loan.
f. How much more are you paying for the car than the purchase price?
2. Find a used vehicle of the same make as the new one: Purchase Price = ____________
a. Info on my vehicle including website, pictures, make, model, etc.
b. Calculate your monthly payment for a 5-year loan with a $5000 down payment and 4.3% APR.
c. Once again, you cannot afford to put money down on the car and the dealer informs you that your poor credit results in a 17% APR. How does this affect your monthly payment for a 5-year loan?
d. Using the monthly payment from Part B, calculate the total amount you will pay for the car over the life of the loan.
e. How much more are you paying for the car than the purchase price?
3. Reflection: In a short reflection below, answer the following questions in paragraph format.
· Have you purchased a vehicle before? If so, do you have any regrets about your experience?
· After this activity, do you feel more confident and informed about buying a vehicle?
· Now that you have completed this activity, if you were shopping for a vehicle, would you choose to buy new or used? Explain why.
Part 2: Comparing the Hybrid model to the Regular Vehicle
Question:
Is it worth buying a Hyundai Sonata hybrid instead the regular Hyundai Sonata?
To answer this questions we will break it down.
1) What are all of some of the factors to consider? List at least 3.
2) Focus on cost of fuel.
An average driver drives about 12,000 miles a year. Suppose that you expect to drive about 75% of that in the city. Find the yearly fuel cost for each. Assume gas costs $3.59 gallon. Show your work.
a) Hybrid fuel cost
b) Regular fuel cost
4) What is the percent decrease is the gas cost for the hybrid?
5) Research and discuss the starting prices for each vehicle.
6) To better answer the “is it worth it” question, how long it will take the gas savings to make up for the additional initial cost?
Discuss the pros and cons for each vehicle.
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
