1. Ch. 10.3 Owning and Operating Costs Objective 1.Calculate car mileage per gallon 2. Compute operating costs 3. Compute costs of leasing a car

2. Mileage In the past year, sedans have outsold the SUV. Can anyone guess why? One thing that has made a big difference is mpg’s.

3. Maintenance One should calculate oil changes and tune-ups in a car, as well as other maintenance costs. Experts say that one should do an oil change every 3,000 miles and a tune-up every 10,000 miles. Take a car in for regular check ups such as air pressure, tear and wear, rotation, for tires.

4. Repairs Say you take your car in for a check up and you find that your car will eventually need a new battery, new tires, and brake linings. Also, she will need to replace filters, hoses, bands, and possibly a fuel pump, alternator, and muffler.

5. Leasing a Car Since car expenses are often high and since cars depreciate value, car leasing has become popular. Leasing is an arrangement where a car is rented for a monthly payment for a number of years. The company pays for maintenance and repairs. Which cars are expensive to repair?

6. Average Miles per Gallon where a = average mpg m = total miles driven g = total gallons purchased Here’s how to find your mpg’s 1. Record the mileage when the gas tank is full. 2. Fill the tank the next time: record mileage, and gallons 3. Repeat several times

7. Example 1 Say you repeated the process several times. Find the average mpg. Assume $3.50 per gal. Odometer ReadingGallons of GasAmount 11,400---------- 11,6049.7 11,84211.2 12,0278.6

8. Example 2 You purchased gas 3 times to drive 627 miles in example 1. What is the cost per mile for gas? Average Cost per Mile Where b = average cost per mile c = total cost m = total miles driven

9. Example 3 Calculate Mr. Torres’ weekly, monthly, and yearly expenses on gas if he drives about 35 miles per day.

10. Try Your Skills Mark Drives 537 miles on 23.7 gallons. He pays $30.57 for the gas. He calculates his yearly car expenses. 1.Find Mark’s average miles per gallon. 2.Find his average cost per gallon. 3.Find the average cost per mile. 4.Find Mark’s cost if he drives 12,000 miles per year.