BUYING, INSURING AND REGISTERING: PROJECT
Name: ______________________________ Block: ____
DIRECTION: This is a take home test to be done with your parents/guardians. This does not mean they do it for you. Your parents/guardians will provide their insurance coverage/cost (page #4); be co-owner on the registration form (page #5); and provide their signature on the bottom of page #5, as proof of their participation. At no time, copy any information from another student. Both students will receive a zero (0) for their test.
(1) I NEED A VEHICLE FOR:_________________________________________________
(list reasons) _________________________________________________
(2) I WANT A VEHICLE WITH:________________________________________________
(list options, features, etc) ________________________________________
________________________________________
(3) LIST FOUR (4) VEHICLES THAT MEET THE ABOVE LIST OF NEEDS AND WANTS:
YEAR MAKE MODEL(letter) BODYTYPE(doors) ASKING PRICE SOURCE
_____ ___________ ______________ __________ $_____________ ________
_____ ___________ ______________ __________ $_____________ ________
_____ ___________ ______________ __________ $_____________ ________
_____ ___________ ______________ __________ $_____________ ________
(4) I WISH TO RESEARCH THIS VEHICLE FOR MY PROJECT:
YEAR: ________ MAKE: ________________ MODEL/SERIES: ________________ BODYSTLYE/TYPE: ________________ MILEAGE: ________________
PURCHASE PRICE:$ _______________
AVG.RETAIL (high book) TRADE-IN/ACTUAL VALUE LOAN (80% of Retail) (70 % of Retail) $ ________________ $ ___________________ $ ___________________
(2)
BUYING, INSURING, AND REGISTRATION OF A VEHICLE
(A) DOWN PAYMENT: (money you provide prior to a loan)
If PURCHASE PRICE is less than AVG. LOAN, then NO DOWN PAYMENT!Enter $0.00 in A:
If PURCHASE PRICE is more than AVG. LOAN, then...
PURCHASE PRICE - AVG. LOAN = DOWN PAYMENT$ _______________ $ ____________ = A: $ ______________
(B) LOAN:(All students are required to take out a loan, as part of the project/test)
To figure MONTHLY PAYMENTS use this AMORTIZATION CHART to get a close
approximation of the cost to borrow money over time/years.
USED VEHICLE - 9% NEW VEHICLE - 6% (index #) (index #) 12 months (1 yr.) .0887 .0885 24 months (2 yrs.) .0463 .0456 36 months (3 yrs.) .0331 .0329 48 months (4 yrs.) .0234 .0249 60 months (5 yrs.) ------- .0208
Match up the interest rate (used or new vehicle?) and the number of months (years)
you wish to borrow the money for. To figure your MONTHLY PAYMENT, you need to
take the PURCHASE PRICE or AVG. LOAN (whichever in lower) and multiply (X) that
price by the index number (.0000) on the AMORTIZATION Chart (above),
= equals MONTHLY PAYMENT, times (X) 12 months = equals YEARLY LOAN
PAYMENT.
PURCHASE PRICE or AMORTIZATION AVG. LOAN X index # (above) = MONTHLY PAYMENT (whichever is lower)
$ ___________________ X . ________ = $ _________________
X 12 monthsYEARLY LOAN PAYMENT = B: $ _________________
(3)
BUYING, INSURING AND REGISTRATION OF A VEHICLE
(C) SALES TAX:
Tax is 6% of the PURCHASE PRICE or ACTUAL VALUE/TRADE-IN,
whichever is higher. (see section #6 of Registration form - page 5).
PURCHASE PRICE or TRADE-IN (whichever is higher) X .06 = C: $ SALES TAX
$ ___________________ X .06 = C: $ _______________
(D) TITLE FEE: (see section #9c of Registration form - page 5)
ENTER TITLE FEE: D: $ _______________
(E) MAINTENANCE COST: (use chart below to estimate yearly maintenance cost)
1 YEAR = $ 300 5 YEARS = $ 700 2 YEARS = $ 400 6 YEARS = $ 800 3 YEARS = $ 500 7 YEARS = $ 900 4 YEARS = $ 600 >8 YEARS = $ 1,000
ENTER MAINTENANCE COST: E: $ _______________
(F) REGISTRATION FEE: (see section #9a of Registration form - page 5)
ENTER REGISTRATION FEE: F: $ _______________
(G) GASOLINE COST: (use formula below)
(1) Estimate the vehicle's miles per gallon (MPG) or www.eren.doe.gov/feguide (2) Estimate the miles you wish to drive in one year (see #1, page 1).
Divide MPG into MILES/YEAR = GALLONS USED
___________________ = GALLONS USED ______ MPG /__________________ MILES/YEAR (estimated) (estimated)
Take # of GALLONS USED X $__ . _____ = GASOLINE COST
________ GALLONS USED X $__ . ____ = GASOLINE COST: G: $ _____________
(4)
(H) INSURANCE: Use you parent's insurance policy/company to answer these next items, unless you have obtained your own insurance quotes. All insurance information is STRICTLY CONFIDENTIAL.
INSURANCE COMPANY: ________________ AGENT'S NAME:_________________
Coverage Semi-Annual Cost
(single limit)
Liability: $ ____/____/____ or $ __________ Cost: $ __________
Collision: $ _________ (deductible) Cost: $ __________
Comprehensive: $ _________ (deductible) Cost: $ __________
Medical Pay. $ _________ Cost: $ __________
Uninsured/Under
Motorist: $ _________ Cost: $ __________
Towing: $ _________ Cost: $ __________
TOTAL: (6 months) = $ __________
X 2
YEARLY INSURANCE TOTAL: H: = $ __________
1st YEAR'S COST 2ND YEAR'S COST
A: $ _____________ DOWNPAYMENT A: $ ________________ B: $ _____________ LOAN B: $ ________________ C: $ _____________ SALES TAX C: $ ________________ D: $ _____________ TITLE D: $ ________________ E: $ _____________ MAINTENANCE E: $ ________________ F: $ _____________ REGISTRATION F: $ ________________ G: $ _____________ GASOLINE G: $ ________________ H: $ _____________ INSURANCE H: $ ________________
= $ ___________1ST TOTAL YEARLY = $ ______________2ND VEHICLE EXPENSES
COST PER MILE-1ST YEAR COST PER MILE-2ND YEAR
$ ______________ TOTAL YEARLY EXPENSES $ ______________
divided by MILES/YEAR (estimated miles from G #2) divided by MILES/YEAR
= ______________ COST PER MILE = ______________
COST PER MONTH-1ST YEAR COST PER MONTH=2ND YEAR
$ _____________ TOTAL YEARLY EXPENSES $ ______________
divided by 12 MONTHS divided by 12 MONTHS
= _____________ COST PER MONTH = _____________
* WHAT KIND OF A JOB WILL YOU NEED TO OWN THIS VEHICLE?
* WHAT DO YOU HAVE TO GIVE UP TO OWN THIS VEHICLE?