1. Selling Cars
Function Project

2. Function Project Research HW
What did you learn?

3. Why do we pay interest?
If you have enough money to pay for a car the day you take it from the dealership, that’s the least expensive way to go

4. Why do we pay interest?
Most people cannot do this, so they pay the car off over time and pay an additional monthly fee in order to do so
This monthly fee is called “interest”

5. Why would I want a down payment?
Some people choose to pay some money towards their car right away so that they pay interest on a smaller amount of money
This initial payment is called a “down Payment”

6. You are a car salesperson!
For this project, each team member will represent a different dealership that is attempting to get a client to buy a car from their dealership

7. Simpleville
The dealerships are all in Simpleville, which has strict laws to ensure that everything is always considerate, fair, and…of course…simple

8. Simpleville
In Simpleville, car dealerships all have to offer a customer the best interest rate that the customer is approved for
Interest is added on to the price, so the less interest you have to pay, the better!

9. Simpleville
In Simpleville, dealerships are also only allowed to offer loan terms of either 4 or 5 years

10. Customer Information
Facilitators will choose a customer card from the bucket
As a team, fill out the customer information box on your document

11. My Dealerships Offer Reader, read the next box
As a team, fill out this section

12. What car should our customer choose?
Supply managers, get ONE chromebook for your team
Reporters, you need to research your teammates’ suggestions and ideas
Facilitators, make a final decision if necessary

13. How much will I charge the customer?
Subtract the down payment you chose from the price of the car. This gives you the loan principal.
Take the loan principal times your interest rate (as a decimal!)
This is the interest for 1 year only.

14. How much will I charge the customer?
Take the interest for 1 year times the number of years for your loan term. This gives you the total interest payment.
Add the total interest payment onto the loan principal (the difference from the first step) to get the total loan amount.
Divide this amount by the number of months of the loan term to get the monthly payment.

15. How much will I charge the customer?
Take the monthly payment times the number of months of the loan term
Then add on the down payment
This is the final cost of the car for the customer

16. Congratulations!
You just made your first (maybe only?) Car sale offer Ever!