CAR on CREDIT Powerpoint Assignment Sheet
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CAR on CREDIT PowerPoint Assignment Sheet. The objective of this assignment is to help the student understand the costs that are associated with buying a new car.
Directions
You are 25 years old and you are still single and you have been on your new career job now for over a year and have saved up some money to buy yourself a new car. Currently you own: a 2000 Ford Mustang 2 Dr GT Convertible all of the options average miles excellent condition.
You are interested in trading it in on a new car. You have a budget of approximately $700 a month for 48 months at 7% interest rate above and beyond the value of your mustang and you are to buy a car with whatever options you want. You plan on trading in your Mustang for your car and borrowing the rest from the local bank.
Slide 1--- Title: Name;
Put your name, class hour and CAR ON CREDIT title.
Slide 2 --- Title: New Car Choice; Go to www.edmunds.com and find a new car that you would like to buy. Copy and paste to the slide a picture of that car you want to buy and below the picture, the name and Company that makes it. Example Taurus---- Ford
Slide 3 ---Title: Cost of New Car; List on the slide all of the options that you would like to have in the car and find and list on the slide the total Manufacturer’s list price.
Slide 4 ----Title: Trade In Value; Go to www.edmunds.com and list on Slide 4 the trade in value, private party value and the Dealers Retail value of the Mustang you want to trade in.
Slide 5 ---Title: Amount to be Borrowed; List on this slide the amount you are going to borrow by subtracting the Trade in Value that you found from slide 4 from the Manufactures List Price from slide 3. Put the amount to be borrowed on this slide. Next to this amount….., list a “guess” as to what your monthly payment is going to be.
Slide 6----Title: Cost of Loan; Now go to www.bankrate.com and click on auto loans. To complete this slide, follow the directions below:
You are looking to see how long a car loan usually is and how this effects the monthly payment. In the loan calculator – enter the time as 5 years or 60 months and the rate as 7%. Find out what your monthly payment would be and enter that on Slide 6.
Slide 7 --- Title: Interest vs Principal: Go back to the report that you completed in slide 6. Click on the button for the amortization table. List on this slide that when you made your 3rd payment how much of your monthly payment went to reduce your Principal (what you owe) and how much went to Interest (cost of loan). Do this again on your very last payment. * It will be easiest to do a table on this slide.
Slide 8 --- Title: Summary; On this slide, answer the following questions. Just put your answers on this slide. Knowing what you know now….. 1. Would you buy this car or not? 2. Would you pay cash or would you borrow? 3. Were you surprised by how much a new car really costs? 4. Did this assignment help you to learn about using credit?