MAT 1010 Car Buying vs. Leasing Homework
Homework is Due Monday at the BEGINING of Lab
1. Find a group of 2-4 people to work with. I am expecting
that you will work on this homework outside of class.
(If you decide on a car quickly, this should take around 15 minutes)
As a group, decide on the following together
(you may each wish to do this, and then meet briefly/ or
e-mail to decide
which car you want to go with):
Go to the Edmunds page
Be patient, as it may take awhile. Follow the links on their
page to find a new or used car your group wishes to buy.
For example, you might click on New Cars (on the left), then on Subaru,
then on (2000 Pricing Also Available),
2000 Subaru Impreza 2.5 RS AWD Sedan,
Vehicle Prices (MSRP, Dealer Invoice, & TMVSM),
then copy and paste this info into Microsoft Word,
then hit the Back key on your web browser,
then click on
Optional Equipment (Descriptions & Prices) and scroll down past
the color choices to
list the nonstandard options you wish to purchase along with their price.
Copy and paste this info into Microsoft Word.
If you don't find a car you like on Edmunds, you may search the web
for other cars (if you can find the needed info).
Be sure that your print out includes the
MSRP and dealer invoice, the destination charge (which you must
pay for), and the price of
any options that you want.
Each group should do one car, and decide on the info. One set of printouts
per group due.
Print out Microsoft Word sheet with the
vehicle name, prices and optional equipment prices that
your group wants.
that you have negotiated with the dealer and will pay $500 over the
invoice price. You must also pay the destination charge, and
any special taxes.
Circle any options that you want and add everything up.
What is the price of your car with all options you want,
the $500 over invoice, the destination
charge and any other special fees?
In North Carolina, you must pay a 3% sales tax. Add this to the price
of your car to get your car's total price. How much is this?
What is 90% of the car's total price (which you will need to take out
as a loan)?
3. Assume that you will put 10% down on your car.
Then you will need a loan for 90% of the car's total price (in bold above).
Is your car a new vehicle or used vehicle? Circle the appropriate block
of text. (I obtained the following from the State Employees Credit
Union at http://www.ncsecu.org/):
NEW VEHICLE LOANS
Up to 60 months 8.00%
61 to 72 Months 8.25%
All 2000 and 2001 models must have less than 10,000 miles.
USED VEHICLE LOANS
1996 - 2001 Up to 60 Months 8.25%
5 years or older Up to 48 months 8.25%