Financial Budgeting Simulation
Buying a New Car
Objectives: Access online car buying information
Determine trade in value of a vehicle
Calculate how much money can be spent on a new car
You will be meeting with your banker to apply for a car loan. Prior to that meeting, you need to
select which car you want to purchase and determine how much money you have available for a
down payment and how much you are willing (and able) to apply to monthly payments
Part 1: Trade in Value of Current Vehicle
Current make and model of car: _________________________
1. Go to Kelley Use Car Blue Book Values at:
2. Key in the information about your car
o You will have to make some assumptions about your individual car
o Select trade in value
o Mileage = 85000
o Condition = Good
3. Record the value in part 3, number 3
4. What factors influence the value of a used car?
Part 2: Selecting a new car to purchase
1. Visit www.cars.com to shop for a car
a. If you have a particular car in mind, you may visit an alternate website
b. You can only buy a 2005 or later model car
2. Record you vehicle information below:
Make and Model: _______________________________________
Are there any rebates or other sales incentives for this vehicle? If so describe and adjust the
Part 3: Available Funds for Down Payment
1. How much do you anticipate applying towards a down payment for your car (in $s or a %
of total price)?
2. Current amount in savings account: _______________________
3. Trade in value of current vehicle: ________________________
4. Total funds available for down payment (2+3): _________________
5. If you do not have enough for a down payment, where could you get additional funds?
6. What are the benefits of a large down payment?
7. What are the potential drawbacks to depleting your savings?
Part 4: Loan Information (to be completed with your banker)
Length (term) of loan: __________________
Interest Rate: _______________
Monthly Payment: ____________________