The Financial Ride of Your Life In this project you will learn about buying a car. You will investigate costs involved based on factors such as features you want to add to the car, maintenance of the car over time, tax, down payments and much more! You will compile all of the information about the cost of owning your car onto a PowerPoint presentation and present it to the class. For each of the numbers below, there is a suggested number of slides. This is only a suggestion, so you may use more or less as necessary! 1.My Car (1 slide-”title slide”) a.Choose the car that you want to purchase. Include a picture of the car on this slide as well as… i.Make ii.Model iii.Year iv.Color 2.What’s the Cost? (2 slides) a.What is the base price of this car? In other words, what is the cost of the car with no additional features or extras? i.This price is referred to as the MSRP. What does MSRP stand for? b.What additional features do you want on the vehicle? List each feature and how much it adds to the price. c.Is there a destination charge? For instance, if the car you want is in New York, what is the dealer going to charge you to bring it to North Carolina? 3.No Cash? No Problem! (2 slides) a.As a high school student, you probably don’t have the kind of cash needed to buy this car. Luckily, The Bank of SSOE is handing out loans! See Ms. SSOE to check how much money you have in the bank for a down payment and to apply for a loan. i.What is a down payment? ii.How much money do you have for a down payment? iii.How much money do you need the bank to lend you? iv.What is the term of the loan? v.What is the APR? What does APR stand for? b.Now you have to make a plan for paying off your loan, or Ms. SSOE will repossess your car! i.Use the finance table to determine your monthly payment. Make sure you select the correct finance table based on the term of your loan! ii.How much are you actually paying for the loan over the entire loan term? iii.What is the difference in the amount that you paid for the loan versus what you would have paid in cash for the car?

4. Keep on Movin’! (4-6 slides) a. There are many operating costs involved with owning a car. The first cost is what you owe the state. There is an annual registration and license fee based on the weight of the car. If the car weighs less than 6000 lbs, the fee is $ If the car weighs more than 6000 pounds, you pay $83.50 plus $0.60 for every 100 pounds over What is the annual cost of the registration and license fee for your vehicle? b.Your car can’t run without fuel! The average rate of fuel consumption for a vehicle is given in MPG. i.What does MPG stand for? ii.What is the MPG for your vehicle in the city? iii.What about the MPG on highways? iv.The average person drives about 8000 miles per year on highways and about 4000 miles per year in the city. How many gallons of gas would you consume per year with this amount of driving? v.Even though gas prices change daily, we can plan using data. The average price of gas in 2008 was $3.50. Using this average value, what will be the estimated fuel cost for a year of driving? c.You’ve got to keep your car running smoothly by keeping up with the maintenance. i.You should change the oil in your car every 3,000 miles. Based on the mileage above, how many times will you change the oil in your car each year? It costs about $25 to change the oil. What will be the total oil change cost for one year? ii.You must rotate the tires on your car every 6,000 miles. How many times will you rotate your tires in one year? It costs about $20 to rotate your tires. What will be the total cost of tire rotation for one year? iii.You must replace the battery every 3 years. Each time you do so, it costs about $80. What is the total operating cost for your entire loan term? d.Are you in good hands? Car insurance is a MUST! Find an insurance website that will give you an online quote (Geico, Progressive, Allstate, etc.). You want the following coverage: Uninsured Motorist (bodily injury) $50,000/$100,000, Uninsured Motorist (property damage) $25,000 w/ $250 deductible, and Collision $250 deductible. i.What is the insurance company that you would select and what are they charging? Is this price per month, per six months or per year? ii.If you were going to pay for insurance monthly, what would the monthly rate be? iii.What will be the total cost of insurance for your entire loan term? 5.“Model” Your Car! a.This is where you sum it all up! Which costs are the monthly costs of owning a car? b.Over the entire term of your loan, what is the total amount of money you will end up spending on your car?

The Financial Ride of Your Life: Extra Credit Ideas Your friend wants to by a new car. Now that you’ve just bought your first car, you’re an expert! What advice do you have for your friend? What things does he need to consider about buying a new car? Every year, you and your family drive from Durham to some city for a family vacation. How does this increase the annual fuel cost of your vehicle? How much does it increase the operating costs of your vehicle over the loan term? OOPS! You got in a fender-bender, and it was your fault! That means you have to pay to fix your car AND the other guy’s. Besides repair costs, how does this accident affect your financial situation and the operating costs of the car? The Financial Ride of Your Life: Extra Credit Ideas Your friend wants to by a new car. Now that you’ve just bought your first car, you’re an expert! What advice do you have for your friend? What things does he need to consider about buying a new car? Every year, you and your family drive from Durham to some city for a family vacation. How does this increase the annual fuel cost of your vehicle? How much does it increase the operating costs of your vehicle over the loan term? OOPS! You got in a fender-bender, and it was your fault! That means you have to pay to fix your car AND the other guy’s. Besides repair costs, how does this accident affect your financial situation and the operating costs of the car? The Financial Ride of Your Life: Extra Credit Ideas Your friend wants to by a new car. Now that you’ve just bought your first car, you’re an expert! What advice do you have for your friend? What things does he need to consider about buying a new car? Every year, you and your family drive from Durham to some city for a family vacation. How does this increase the annual fuel cost of your vehicle? How much does it increase the operating costs of your vehicle over the loan term? OOPS! You got in a fender-bender, and it was your fault! That means you have to pay to fix your car AND the other guy’s. Besides repair costs, how does this accident affect your financial situation and the operating costs of the car?

The Financial Ride of Your Life: Scoring Rubric The Financial Ride of Your Life: Scoring Rubric Name_______________________________ PowerPoint Contents My Car - Make, Model, Year, Color - Picture __________ / 5 What’s the Cost - Price, MSRP - Features and cost - Destination Charge? __________ / 10 No Cash? No Problem - Down Payment - Loan Amount - Term, APR - Monthly Loan Payment - Actual Cost of Loan - Difference __________ / 15 Keep on Movin’! - Weight of car - Registration fee annually - MPG, city/highway - Gallons of gas - Fuel cost per year - Oil changes, cost - Tire rotations, cost - Batteries, cost - insurance, monthly rate - total insurance cost __________ / 20 “Model” Your Car! - Monthly Costs - total amount spent ___________ / 10 Presentation - Is your presentation clear? (15 points) - Is your presentation easy to see/read? (10 points) - Did you explain each slide clearly? (15 points) ___________ / 40 Creativity/Extra Credit - Are appropriate pictures included? (up to 3 extra points) - Is the presentation eye-catching? (up to 3 extra points) - Did you include information beyond what was asked for? (2 points per extra slide) + ___________

Presenter’s Name ___________________________ Car: _______________________ Two facts from this presentation: 1.__________________________ ___________________________ 2.__________________________ ___________________________ The grade I would give (circle): Contents: A B C D Creativity: A B C D Presenter’s Name ___________________________ Car: _______________________ Two facts from this presentation: 1.__________________________ ___________________________ 2.__________________________ ___________________________ The grade I would give (circle): Contents: A B C D Creativity: A B C D Presenter’s Name ___________________________ Car: _______________________ Two facts from this presentation: 1.__________________________ ___________________________ 2.__________________________ ___________________________ The grade I would give (circle): Contents: A B C D Creativity: A B C D Presenter’s Name ___________________________ Car: _______________________ Two facts from this presentation: 1.__________________________ ___________________________ 2.__________________________ ___________________________ The grade I would give (circle): Contents: A B C D Creativity: A B C D Presenter’s Name ___________________________ Car: _______________________ Two facts from this presentation: 1.__________________________ ___________________________ 2.__________________________ ___________________________ The grade I would give (circle): Contents: A B C D Creativity: A B C D Presenter’s Name ___________________________ Car: _______________________ Two facts from this presentation: 1.__________________________ ___________________________ 2.__________________________ ___________________________ The grade I would give (circle): Contents: A B C D Creativity: A B C D Presenter’s Name ___________________________ Car: _______________________ Two facts from this presentation: 1.__________________________ ___________________________ 2.__________________________ ___________________________ The grade I would give (circle): Contents: A B C D Creativity: A B C D