Invest in your future
Do homework for car purchase
By ANNA McCARTNEY in your pocket each month is
email@example.com moving to an area where you
can take public transportation, Teacher Jana
Your decision to become a ride a bike or walk. It will also Slater, State Rep.
car owner will determine all decrease your carbon footprint! Florindo Fabrizio
your transportation expenses. and principal
And there are more than you Know before you buy: John Dahlstrand
can imagine. Don’t set foot in a visit Junior
showroom or used car lot until ■ The other costs like insur- Achievement third-
you know if and what you can ance, depreciation, repairs, grade honor
afford and how it will affect maintenance costs, etc. students at Harding
your financial health. ■ Fuel efficiency matters. Elementary.
If you are not paying in full, ■ Insurance rates for teens
do you have at least a 20 percent and single males under the age
down payment? Is your credit
good enough to secure a loan
of 25 are high.
■ Safety features matter — JA contributor visits Harding students
with affordable rates? Can you they can lower your insurance ven before Junior Financial Literacy program for
afford insurance and other yourself in a dangerous upside car that’s sitting in the junkyard. rates and injuries. Achievement’s Annual students at Harding
costs associated with owning a down situation where your car is According to AAA, the annual ■ Get your credit report Elementary. These students
vehicle and still afford your worth less than what you owe. cost of driving an average sedan before you apply for car loans. Breakfast marked the official participate in the JA program
other living expenses? Cars are not investments — they 10,000 miles including gas, oil, ■ No credit or history or poor as part of their everyday
start of the 2007-2008 fundraising
Create a budget with all your lose value or depreciate. The maintenance and depreciation, credit history makes it unlikely campaign in November, JA had education and receive
annual costs to own that car. In minute you walk out of the show- is $6,214 while driving 20,000 you’ll get a loan or your interest already brought in nearly 40 materials (workbooks, study
addition to monthly loan pay- room your car loses value. miles costs $9,498 per year. So rates will be extremely high. percent of their goal thanks to guides, posters, CD ROMs) to
ments, include insurance, fuel, It’s bad news to owe more on that dream car could become ■ Lenders won’t approve car enrich their learning process
their various corporate
regular oil changes, tires, yearly your car than it’s worth! If you your financial nightmare if loans on used cars older than 5 supporters, legislators and and are often carried home to
registration and inspection fees try to trade or sell it before it’s you’re not prepared. years. individual givers who believe in share with families.
and other maintenance. paid off, the going price won’t Only buy what you can truly ■ Longer loan terms and On March 28 Fabrizio visited
the mission of JA. Several of
If you don’t have 20 percent to be enough to pay off your loan. afford. If a new car doesn’t fit higher rates can add thousands these supporters were Harding to meet some of the
put down and can’t pay the If your car is totaled in an acci- your budget, consider used cars to the cost of the car. acknowledged at the event, students. They discussed the
remaining borrowed amount in dent, you’ll be without wheels only after researching their including State Rep. Florindo political system, asked him
48 monthly payments, don’t buy because the insurance money dependability and any costly ANNA McCARTNEY, Fabrizio, D-2nd Dist. questions about his position
that car. And don’t be persuaded won’t be enough to pay off the repair issues. Another excel- Newspaper in Education Fabrizio secured state and provided him with thank-
into a longer term. The more you car loan or pay for another lent and better alternative that coordinator, can be reached by funding of $10,000 to help you cards and a certificate of
owe, the more likely you will find vehicle. You end up paying for a will leave you with more money e-mail or at 870-1820. finance materials for JA’s appreciation.
Activity of the week
hould you walk, take public $228.02/month for three years with a 7.12 ■ Maintenance cost — $750/year based
transportation or buy a car? How percent interest loan. on AAA estimates for sedans driven
■ Your rate may be higher or lower 15,000 miles or five cents/mile.
much money do you need monthly
for each choice? depending on your credit history.
TRIVIA BONUS QUESTION
Use the calculator at Now answer the following: Which of the following people is most likely
■ A good pair of walking shoes costs $80 http://bankrate.com/brm/auto- to have the lowest auto insurance premium?
— you will need two per year. loan-calculator.asp to use other rates. What would a 20 percent down
■ $420/year will get you a bus pass in ■ Insurance — AAA estimates payment be for the new and used cars A. A single person driving a foreign sports car.
Erie — you can ride all day, every day! $985/year for a 47-year-old male driver for above? B. A married person driving in a rural town.
■ A new $20,000 sedan will cost an average sedan. Premiums vary with What is the total yearly fuel cost for C. A young person driving in the city with a long accident
$476.89/month for three years with a 6.78 each car and driver but they spike 50 Car A, Car B? For each car what is the record.
percent interest loan. percent to 200 percent for teen drivers monthly fuel cost, yearly? For the most D. A person driving an old, high-mileage care with a lot of
■ Depreciation — as soon as you leave and males under 25. If you are in this fuel-efficient car how much can you speeding tickets.
the showroom your car begins to lose its category find out your cost and use that save monthly, yearly, over 5 years?
value. In fact, AAA estimates the average amount instead. Has the true cost of driving made NOTE: Visit www.cccr.psu.edu to find the correct answer and
annual cost on a sedan driven 15,000 ■ Gasoline — current price is $3.30 per you think twice about car ownership? to play the S3 online game — Save•Spend•Succeed and
practice for the Live S3 Game Show. Two teams will compete
miles per year is $3,392. gallon. Car A gets 15 mpg and car B gets 34 http://www.commutesolutions.org/ for prizes at Penn State Behrend. Stay tuned for details.
■ A used $9,500 sedan will cost mpg. You drive 15,000 miles per year. calc.htm.
Volunteer for the Junior Achievement/NIE program Using what you have learned about car insurance, find an advertised
automobile that would qualify for the lowest rates. Which would be the
Invest in the future of our children. Share your experience to help them put together the pieces to become productive members most expensive to insure? Explain. Use the Internet to check your
of society. Sign up today! Contact Erica Jackson at 898-6385 or firstname.lastname@example.org or visit www.erie.ja.org. answers. Try personal variables (age, driving record, etc.) to see how they
affect insurance rates. Look for the best auto deals. Use
newspaper ads, the Internet and other sources to learn
how sound systems, wheels and special packages affect
the purchase price for automobiles.