# Buying a Car By Haris Mohamedy. My Budget If I get \$300 a week I should get \$15,600 per year. (\$300 per week)(52 weeks in a year)

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Buying a Car By Haris Mohamedy

My Budget If I get \$300 a week I should get \$15,600 per year. (\$300 per week)(52 weeks in a year)

Which Car? I really like BMWs.

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 A(N+1)(APR) 2P = 25,000(36+1)(0.07) 2(12) = 25,000(37)(0.07) 24 = 64,750 24 = 2,697.92 (Rounded)

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.

THANK YOU FOR LISTENING!!!

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