Assignment
For this discussion, you are going to research buying a car and you will report on your research.
Here are some of the things you will consider and include in your post:
1. What type of car will meet your needs? Consider some of the following questions: What will you use your car for? Will you need it to haul anything? Will it need to seat more than two people? Will you need four-wheel drive? Will you be traveling long distances with it and/or commuting long distances? How much gas can you afford to buy each month?
2. Now select and list 3 car models that meet your requirements from above.
3. Do some research on your 3 cars and discuss reliability of car, along with mpg ratings and other important features. You may want to look in Consumer Reports for this information. Which car has the better ratings? Which car will you choose? Be sure to include citations to your sources.
4. Now look locally for a car that meets your criteria list the details: Make, Model, Year, Features, and price. You may look at car sales websites, local newspapers or auto trading periodicals. Include your source. Assume you will purchase this car for listed price plus sales tax (use an 8.3% sales tax rate OR use the tax rate for the appropriate city from this listhttps://phoenix.about.com/library/blsalestaxrates.htm (Links to an external site.)). Assume that you will put $4000 down payment and will get a loan for the rest (retail price + sales tax - down payment). How much will you finance? (By the way, you will use the name of the car you buy as the Subject Line of your post.) (NOTE: no two students should have the exact same data or calculations in these posts!)
5. Look online at your bank's website or call them to find out what their current auto loan rates. Assume your bank loan will be for 3 years. What is the monthly payment for your auto loan? Show calculations and/or include the variables used in the TVM Solver. How much will you pay in interest with this loan over the three years? What was the total cost of your car after you've paid the loan....include down payment, loan amount and total interest paid. (NOTE: no two students should have the exact same data or calculations in these posts!)
6. Now that you've gone through this process, what did you learn about purchasing a car? How might this exercise affect your future car purchases?