You and your partner have just inherited $5,000 from a long lost relative. With this money you can buy a car but it comes with some strings attached. You must prove that you are mature enough to handle the responsibilities associated with car ownership: financing, insurance, and driving school costs. This will be evident to the "will executor" when he/she checks the final figures on your worksheets. You will complete the following activities and then make a final decision on which car you want to buy. You will write a paragraph stating your decision and the reasons for your choice.
First--You will first choose two different cars that you would like to purchase. One should be a new car and one should be a used car. You can spend more than your $5,000 and use that as a down payment. Be sure to include the options that you wish to include. By using the given sites on the Internet you will fill in a worksheet which will compare these car models and the prices for each option. Worksheet #1(html) or Worksheet #1 (Word)
Second--Insurance will be the next item you will research. You will look at an insurance company and find the price of a policy based on your age, gender, academic achievements, prior convictions of offenses, and any other questions that the insurance companies ask. The type of car that you select will affect the insurance coverage. To get an online price, it asks you to enter some personal information. Do not use personal information! You may use n@aol.com for an email address, and a "pen name" and address. Do use Milford, CT and the correct car information. For your age, what birth year should you use to be 16 or 17 years old?
Third--Once you have selected the cars and the options, you will need to check out the financing costs. You will find an interest rate and make an Amortization Spreadsheet for each car to see the final cost, including financing costs.
Fourth--You will be given a worksheet which will show you how to figure the price for maintenance and fuel costs of your car. You may consider these in your final decision. Some of these costs will fall under the car's warranty and others will have to be absorbed by you, the buyer.Worksheet #2 (HTML) or Worksheet #2 (PDF)
Fifth--Your final worksheet consists of 3 questions (skip question 1). You and your partner will then write a final paragraph to explain your final choice and the reasons for making this decision. Be sure to answer each question completely. Worksheet #3 (HTML) or Worksheet #3 (PDF)