PURCHASING A CAR 1 Adapted in partnership with ©2015 Educurious Partners--All rights reserved UNIT 3 LESSON 3

Learning Outcomes Students will discover basic information related to the process of purchasing a new or used vehicle. 2 Adapted in partnership with ©2015 Educurious Partners--All rights reserved UNIT 3 LESSON 3

Lesson Tasks Discuss the cost of transportation Complete Purchasing a Car activity Review amortization Reflect on car purchasing decisions 3 Adapted in partnership with ©2015 Educurious Partners--All rights reserved UNIT 3 LESSON 3

COST OF TRANSPORTATION

Transportation Cost Transportation cost account for 10-15% of your budget Cost include: Purchase cost Purchase cost Insurance Insurance Gas Gas Maintenance Maintenance 5 Adapted in partnership with ©2015 Educurious Partners--All rights reserved UNIT 3 LESSON 3

What Do You Want? To figure out what your car will cost you, you need to decide on the car you want! Do you want new? Do you want used? 6 Adapted in partnership with ©2015 Educurious Partners--All rights reserved UNIT 3 LESSON 3

The Cost of a Car Research the cost of a car and complete Task 1 of The Cost of a Car activity 7 Adapted in partnership with ©2015 Educurious Partners--All rights reserved UNIT 3 LESSON 3

How Will You Pay for Your Car? You need to ask yourself some important questions: How much money you will need to borrow? Do you plan to get into debt? If you buy from a dealer, you will need to give a down payment? What is the amount you give to the dealer on the day of purchase? 8 Adapted in partnership with ©2015 Educurious Partners--All rights reserved UNIT 3 LESSON 3

Research the Cost of a Car Research the cost of a car and complete Task 2 of The Cost of a Car activity 9 Adapted in partnership with ©2015 Educurious Partners--All rights reserved UNIT 3 LESSON 3

Amortization The paying off of debt with a fixed repayment schedule in regular installments over a period of time. Consumers are most likely to encounter amortization with a mortgage or car loan. Let’s take a look: 10 Adapted in partnership with ©2015 Educurious Partners--All rights reserved UNIT 3 LESSON 3

LET’S REVIEW…

Review What amount of your budget goes to transportation? What is the definition of amortization? 12 Adapted in partnership with ©2015 Educurious Partners--All rights reserved UNIT 3 LESSON 3

Review What amount of your budget goes to transportation? % What is the definition of amortization? The paying off of debt with a fixed repayment schedule in regular installments over a period of time. 13 Adapted in partnership with ©2015 Educurious Partners--All rights reserved UNIT 3 LESSON 3

Complete the Lesson… Together with a partner discuss the following: Without considering other transportation costs such as gas, insurance, repairs/maintenance, do any of these choices fit into your 10-15% transportation cost range? Which one(s) fit best into your budget? Why? How will you need to adjust possible transportation costs so these expenses fit within your budget? 14 Adapted in partnership with ©2015 Educurious Partners--All rights reserved UNIT 3 LESSON 3