New Car Research
Thursday, February 7, 2013
Buying A Car
Are you dreaming of buying your own car?
Let's begin with a lesson on car buying. Follow the link below and read through the article "10-Steps to Buying a New Car."
http://www.kbb.com/car-advice/car-buying/step-1-know-your-shopping-style
1. Using the links given (or others), search / research for a car you would like to buy. Be sure to you use the advice you learned in the article. What kind of car do you want? What options do you want? Decide on the Make and Model. How much will it cost?
2. Follow the link to Bank of America and get current interest rate information. Note: rates are different for new and used cars. Pay attention to the details so that you are using the correct rate.
https://www.bankofamerica.com/
3. Using the loan calculator provided on the message board, compute your monthly payment, total amount paid for the car, and total interest paid for your car if you paid it off in 1 year, 2 years, 3 years, and 4 years. Assume you can afford 25 percent of the total price for a down payment and you will borrow the rest. How much money will you need to borrow? Print each years' information from the loan calulator as you work. On each print out, circle the amount of interest paid.
At the bottom on the first printed sheet, answer the following questions.
1. What make, model, year car did you buy? What options did it have?
2. Why was this the right car for you?
3. What was the price of the car? How much was your downpayment?
4. Which payment plan would enable you to pay the least amount of money for your car?
5. Which payment plan would have the lowest monthly payment?