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					                          Invest in your future
Do homework for car purchase
By ANNA McCARTNEY                                                                                                     in your pocket each month is
nie@timesnews.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
                                                                                                                                                                                                  CONTRIBUTED PHOTO
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

                                                                                                                                                              E
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
                                                                                                                                                                      Campaign Chairman’s
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

 S
       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 ejackson@jawesternpa.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.

				
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