Name:

Part 1: What type of car will meet your needs? Take into account all the things you
may need to use your car for?
Will you need to haul anything with your car?
No
Will you need to have more than 2 people in your car?
Yes
Will you need four-wheel drive?
Will you need to drive lots of distance?
No
How much gas can you afford to buy each week?
How much could you spend on repairs each month?
$50

No

$50

Part 2: Create a list of at least 6 cars that meet your needs based on the above
requirements
Ford Fusion
Dodge Dart
Ford Focus

Ford Edge

Ford Escape

Ford Taurus

Part 3: Research the reliability of the cars on your list. You may want to consider
using Consumer Reports for this.
Car

Engine

Fusion

2.04L
4Cylinde
r

Dart

1.42.4L 4Cylinde
r

Automa
tic/
Manual
automati
c

Manual

Fuel
41mpg
city
44mpg
highwa
y
28mpg
city
41
mpg
highwa
y

Safety
5 star
NHTSA

5 star
NHTSA

Extras
(Heated
Seats Etc.)
Base model

good

Base model

good

Overall

Focus

1.0L 3Cylinde
r

automati
c

Edge

3.7L V6
engine

automati
c

Escape

2.5L 4cylinde
r
Engine

automati
c

29mpg
city
40mpg
highwa
y
21mpg
city
30mpg
highwa
y
23mpg
city
30mpg
highwa
y

8.3/10
US
NEWS

Base model

good

4 star
NHTSA

Base model

average

4 star
NHTSA

Base model

bad

Part 4: Find at least 3 cars listed locally that meet your needs.
Make
Ford
Dodge
Ford

Model
Escape
Dart
Edge

Year
2006
2013
2010

Price
$4300
$8500
$1350
0

Features
4wd
4wd
FWD

Contact Info.
West Bloomfield
313-826-2000
810-956-3155

Part 5: Look up the value of each of the three cars you found. Use kbb.com for this.
You must factor in Year, Make, Model, Features, Mileage, and Location to find the
price.
Car 1

$3495
$12813

Car 2

$11482

Car 3

Part 6: Find at least three places where you could secure a loan for one car on your
list. You may want to consider banks and credit unions to find the best deal.
Institution 1: 1st mid America credit union
Institution 2:

Bank of America

Institution 3:

USAA

Part 7: Find, Print, and Complete a Car Loan Application

*** Do NOT include your Social Security # ***MAKE ONE UP!!!!

http://www.hondafinancialservices.com/static/pdf/LEASE_LOAN_APPLICATION_10201
4.PDF
Example additional fill-able example under assignment document
Part 8: Determine what your loan will actually cost. You should come up with the
monthly payment and determine the amount of principle and interest over the life
of the loan.
http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx
http://www.cars.com/go/advice/financing/calc/loanCalc.jsp?mode=full
Monthly payment $________296.39___

Interest $_______ ___

Principle$__________

Part 9: What will it cost to put your car on the road? Identify taxes, registration, and
insurance costs.
http://www.edmunds.com/calculators/car-loan.html

Title Fee and Registration: _$216.5_________________

$35
Insurance:

Plates:

$250
Total: _______$501.60______

____

Part 10: General Up-keep and Maintenance

You also need to be concerned with the general upkeep of your car along with how
much it is going to cost to keep gas in your car. This include regular oil changes
after 3000 miles, two new tires every year for Michigan winter weather adventures
and other car problems that could possibly occur. Below is a list for you to fill out
that will help you calculate the other yearly costs of operating your car.
1. The average number of miles driven per year by Americans is 12000.
A. How many times will you have to change your oil then? 3
B. If you will change it yourself, go to letter (d); if you plan on having
your oil changed by professionals go to letter (c)
C. What is the average cost of an oil change? $
40
a.

Now multiply that number by how many time a year you will
need your oil changed.
Total yearly charge:
$
120

D. For the do-it-yourselfers, you need to determine the number of

quarts of oil you will need every year, the number of oil filters you will
need, we will assume you have the wrenches to complete the job, but
you will need to buy some ramps so you can get to our oil plug.
Number or quarts of oil:
Total cost of oil:
3

Total cost of all filters:

Cost of two car ramps:
Total yearly cost for your oil changes:
2) Since the average number of miles driven is 12000, we are going to determine
how much money you will spend in fuel for one year.
a) Does your car run on gasoline or diesel?
gasoline
b) What is the average fuel mileage of your car (from page 1)? 35mpg
c) What is the average cost of 1 gallon of fuel?

$2.616

d) Find the total cost of your fuel for one year:

(Number of miles driven / avg. fuel mileage)(Avg. cost of 1 gal. of fuel)
12000/35 * 2.616 = $896.92
3) What would the cost of 2 new tires for your car be?
$390
Site where you found this:
https://www.goodyear.com/enUS/tire/search/2013_Dodge_Dart_Aero_118284?addr=Saint+Clair+Shores
%2C+MI+48082%2C+USA&lat=42.5248254&lng=-82.88509190000002
Part 11: Complete the following chart
One Time Cost
Monthly
Registration: $15
Loan: $296.39

Taxes:$820
Plates: $35
Down Payment:0
Other:

Insurance:
$250

Weekly
Gas:$17.25

Repairs
Find at least 3 cost
of repairs for our
vehicle
Brake pads- $100
Engine - $1400
A/C - $400

Part 12: Research and present the cost of buying a car directly from the dealership
BRAND NEW!! What is the benefit of buying a car brand new vs. used. Look in to
the price of that car for a lease option and present the cost of leasing vs. buying
brand new. What is the benefit of leasing? What are the drawbacks? Out of the 3
options, buying used, buying brand new, and leasing, when would each purchase be
required in someones life? What is the best option for you now? What is the best
option for you later on in life? Why?