Car Buying Project EQ How do I use

Car Buying Project EQ: How do I use the decision making process to buy a car?

Car Buying Project n The project is worth 50 points. n You may work with a partner. n One person needs to be the researcher n The other person needs to put the information into a Word or Power. Point document

Car Buying Assignment – Step 1 n Use the flyers to select a used car. n Cut out the ad. n Write down the brand, model and price. List any features, i. e. tinted windows, A/C etc. n The maximum amount you can pay for a car is $15, 000. n This step is worth 10 points

Car Buying Assignment – Step 2 n Create a word or Power. Point document for the information you will collect. n Enter the used car information from you ad.

Car Buying Assignment – Step 3 n Use either KBB. com or Edmumds. com to find the wholesale and retail price of the car you selected. n Add this information to your chart. n Answer the question: n Was the advertised price of the car fair? Why or why not? n This step is worth 10 points

Car Buying Assignment – Step 4 n Use the internet to find a new car. n Use a car dealer website, kbb. com or edmunds. com n Maximum price you can pay is $15, 000. n Add the make (brand), model, price and features to your document. n Answer the following question: n Based on your research which is a better deal: a new car or a used car? Justify your answer. n This step is worth 10 points

Car Buying Assignment – Step 5 n Compare financing options n Use the following website www. bretwhissel. net/amortization/amortize. html n Compare the various loan options outlined on the next slide. n Enter the information into your document. n Answer the following question n Of the following which has the greatest impact on your monthly payment: down payment, interest rate or loan term? This step is worth 10 points

Loan Options to Compare Use these loan variable with the loan calculator. You can cut & past this table into your own presentation. Variable Annual Interest Rate Down Car Loan Term Payment Down Payment 6% 6% 6% $500. 00 $1, 500. 00 $3, 000. 00 48 months Loan Term 6% 6% 6% $1, 500. 00 36 months 48 months 60 months Interest rate 4% 6% 8% $1, 500. 00 48 months

Car Buying Assignment – Step 6 n Conclusion: Answer the following. Use complete sentences. 1. What factors need to be considered when buying a car? 2. What are the advantages and disadvantages of buying a used car? 3. List 3 things you learned from this assignment. n This step is worth 10 points. Total points for the project is 50.