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Buying a car by fanzhongqing


									                                                  Personal Finance
                                           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
Name: ____________________________
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 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: _______________________________________
Price: __________________________
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: ____________________

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