Which Kind of BMW? A new one is probably to expensive. Ill get a used one. Maybe a 2006 3.25i. This midsized car costs $25,000.
The 2006 BMW 3.25i This car is fully loaded with features like a sunroof, Bluetooth, 6 stick manual, alloy wheels, and the basics so I do not need any enhancements.
Yearly Expenses I will need to pay for fees, gas, insurance, maintenance, and a loan.
Fees for License and Registration A car also has fees to pay. For all cars fees would be $75.
Yearly Expenses Fees for License and Registration $75.00
Gas I also need to pay gas. Every week Ill drive to school and back, run errands, and sometimes go out. Altogether that is about 30 miles a week. To figure out the number of miles I drive every year, I multiply the number of miles per week by 52 (number of weeks in a year.) (30)(52)=1,560 miles So I would travel 1560 miles a year and would get about 25 mpg. To get the number of gallons I use every year I should divide the number of miles by the mpg. 1560/25=62.4 gallons Since I pay the current gas price ($2.99) for each gallon. I would multiply $2.99 by 62.4. (2.99)(62.4)=$186.576 Round this to $186.58
Yearly Expenses Fees for License and Registration $75.00 Gas$186.58
Insurance I would need to pay $2,300 for my midsized car.
Yearly Expenses Fees for License and Registration $75.00 Gas$186.58 Insurance$2,300.00
Maintenance For a midsized car maintenance would be about $450.
Yearly Expenses Fees for License and Registration $75.00 Gas$186.58 Insurance$2,300.00 Maintenance$450.00
Loan I decided my loan should be for 3 years or 36 months. The formula to figure out the finance charge is: A(N+1)(APR) 2P
Loan My total finance charge is $2,697.92. I added that to the amount Im borrowing ($25,000). Then I got $27,697.92. I divided that by 36 for the monthly payment and I got $769.39. To get the yearly payment I multiplied it by 12. I got $9,232.64.
Yearly Expenses Fees for License and Registration $75.00 Gas$186.58 Insurance$2,300.00 Maintenance$450.00 Loan Payment$9,232.64
Total Yearly Cost My budget is $15,600. $75.00+$186.58+$2,300.00+$450.00+ $9,232.64=$12,244.22 $12,244.22<$15,600
Conclusion $12,244.22<$15,600 Since the car fits my budget it is perfect for me.