Buying your first vehicle
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- Remember, this project will be combined with your budget that you completed at the beginning of the year . Objective
- Start Date
- Internet quotes are not acceptable
- Internet loan rates are not permitted .
| BUYING YOUR FIRST VEHICLE
100 Points Overview: Students are to prepare for their very first automobile buying experience by conducting an in-depth research analysis on the vehicle of their choice. The only constraint is that the “walk-out” price of the vehicle is not to exceed $28,000. Remember, this project will be combined with your budget that you completed at the beginning of the year. Objective: To evaluate each student’s understanding of the information presented in class pertaining to the: car buying experience; financing the purchase; and insuring the new vehicle. Start Date: October 17, 2016 Due Date: October 31, 2016 – Beginning of Period Assignment: To complete the assignment, each student must: Determine the make and model of a new 2016 or 17 vehicle (including options) that they would like to purchase. Using www.edmunds.com, research the make and model and include the information in the report. Build a spreadsheet that summarizes the anticipated offer and each additional cost associated with the purchase. Use % above invoice or dollars above invoice to summarize your final offer. Offers should be reasonable for the make and model involved. Use the spreadsheet template provided. Using The Kelley Blue Book as a reference, research the current value of the vehicle that you will be trading in. Each student will research the following vehicle: 2005 Honda Accord – LX Sedan 4 door (4 Cylinder – 2.3L VTEC, 5-speed manual transmission) A/C 108,983 miles Power steering Power door locks and windows Cruise control Am/fm stereo with cassette Zip Code – 32806 Alloy Wheels Dual front airbags Tilt wheel Good condition Car paid off *Use KBB’s quoted value on Monday, October 24 for the value of your trade. Print KBB’s quote and include within your project. Students will contact their insurance agent to obtain an insurance quote that would be associated with the vehicle. The quote must be in hard copy format. Internet quotes are not acceptable. Additionally, the student should, during their discussion, identify the options on the new vehicle that would reduce the annual premium. Students are expected to demonstrate their learning from last year’s Project InVEST unit when it comes to selecting coverage types & limits within their quote. Students should obtain quotes from three lenders (use only banks or credit unions) pertaining to current auto loan rates and terms. Many dealerships have their own financing incentives and these can be used as one of the three quotes. Internet loan rates are not permitted. Each student will determine how much they are putting down on the vehicle. The down payment is not to exceed $7,500. The remaining balance will then be financed. As part of the project, the student shall develop an amortization schedule that depicts the terms of the loan (i.e. – monthly payment, amount allocated to principal and interest, total cost of borrowing, etc.). The term of the loan may be 3, 4 or 5 years. The student shall perform three buying scenarios (offers) for the vehicle and illustrate, using amortization schedules, the financial differences that exist between each of the scenarios. Each scenario will include a written analysis that provides insight into your thoughts and expectations. The written analysis must be at least one paragraph consisting of 6 to 8 sentences. Students will provide a closing paragraph that summarizes their experience in buying their first car. Students should focus on and discuss the key strategies/terminology presented within the unit. Required Order: Cover Page & Introductory Paragraph – 2.5 points. The introductory paragraph should discuss the make & model of the vehicle, owner preferences, selected dealer and other information pertinent to the selection of the vehicle. New Car Research – 5 points When considering a new vehicle, check that model’s repair ratings history in the April issue of Consumer Reports magazine. Additionally, obtain information on the safety ratings of the vehicle you are looking to acquire. The student with the most information will receive the highest grade, with every other student ranked in relation to the top score. Kelly Blue Book Trade In Research – 2.5 points The “Deal” – Parts 1, 2 & 3 – 60 points (20 pts each) Financing the Purchase – Comparison of 3 lenders’ rates - 5 points (Using Microsoft Word, build a table that illustrates each of the lenders, terms & rates) Insurance Quote – 5 Points (IT CANNOT BE FROM THE INTERNET) Project Summary: “What I Learned…” – 5 points Please include your original budget (i.e. – the one that you submitted for a grade at the start of the year; it must be the original with the grade on it) plus a revised budget showing how your new purchase impacts your auto insurance, monthly auto payment, and overall budget. On the revised budget, use a highlighter to illustrate the areas that you had to cut back on to squeeze the new vehicle into the budget. Additionally, highlight, in a different color, the new costs were added to the budget. 10 points. Works Cited – 5 points Download 13.05 Kb. Share with your friends:
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