This lab should be done in pairs. Each pair should turn in one copy of this sheet, the printouts from the web, and a letter
addressed to parents, a rich relative or friend.
1. One person from your pair will start up Netscape. The other will start up Excel and open up an amortization table from the house buying lab.
2. You are going to purchase a car using the web to help you.
Go to Edmunds
page. To do this, click
Be patient, as it may take awhile. Follow the links on their
page to find a new or used car you wish to buy.
List the nonstandard options you wish to purchase along with their p\
rice. Always use
the list price. Print out the web sheet on your desired car.
What is the final price of your car with all options? __________________________
To get actual rates and payment information, and to have the ability to immediately apply on-line, Edmund's recommends visiting www.CarFinance.com/edmunds/fin.mcgi for a free, no obligation quote. Enter in the relavant information onto this page and then click on 6 to view the rates. Print out the web sheet with your rates
3. Use Excel to compare payment options. Assume you will put 10% down on your car. Fill in the following chart using your Excel worksheet.
|PERIOD||PAYMENT||TOTAL COST||TOTAL INTEREST|
|LOAN PERIOD||ANNUAL INCOME|
5. You also have the option of leasing your car for 3 years. Use http://edmund.com/edweb/leasing.html Edmund's Do-It-Yourself Guide to Leasing
to help you investigate this option. Read the above Edmund's web page to obtain the details about leasing.
The amount the value of the car decreases is the amount you will be expected to\ pay over the 3 year period. Use this Edmund's web page and excel to determine the monthly lease payment for your car.
|1998 Toyota Camry LE V6 (MSRP) $|
(refunded at end of lease)
|Capitalized Cost Reduction||$
(destination charge + acquisition fee)
|Total Payment Due at Lease Signing||$
(security deposit + cap. reduction)
|Residual Value after 3 years (55% of MSRP in this example)||$|
|Term Depreciation (Capitalized Cost - Residual Value)||$|
|Money Factor (Interest Rate divided by 24)|
|Monthly Lease Rate (Capitalized Cost + Residual Value x .0031)||$|
|Monthly Depreciation (Term Depreciation divided by Lease Term)||$|
|State Sales Tax (Monthly Depreciation + Monthly Lease Rate x Sales Tax Rate [6.5% in this example])||$|
|Monthly Payment (Monthly Depreciation + Monthly Lease Rate + State Sales Tax)||$|