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ADC 11 Purchasing a Vehicle

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Your first consideration when purchasing a new vehicle should be the advantages and disadvantages of buying new or used. Using a search tool (or common sense) please list the following: 1. At least 2 advantages and disadvantages of purchasing a new vehicle. i. Advantages: 1.) less chance of needing work on (parts breaking) 2.) Little to no clicks (km) on it ii. Disadvantages: 1.) Costs more 2.) More expensive insurance 2. At least 2 advantages and disadvantages of purchasing a used vehicle. i. Advantages: 1.) Cheaper Car 2.) Cheaper Insurance ii. Disadvantages: 1.) mileage on it already 2.) Higher chance of it needing new parts, breaking down wont last as long. Decide on 2 vehicles that you will plan to purchase: one new and one used. They do not have to be the exact same vehicle. New Vehicle: you have a $25,000 spending limit on this vehicle. This vehicle must be from a dealership (check the Resources section at the bottom of this assignment for links). (BMW) Used Vehicle: you have a $5,000 spending limit on this vehicle. Remember, you dont have to pay GST if it is a private sale (not from a dealership). (Volkswagen)

On the next pages you will record some important information about each vehicle. You must take a screenshot of your vehicle including the full purchase price, including all taxes (on any vehicle purchased from a dealership).

New Vehicle Make: Model: Year: Purchase Price: Photo: 2014 Tiguan SUV 2014 $24,990 Make:

Used Vehicle Hyundai Sonata Hyundai Sonata 2001 $900

Model: Year: Purchase Price: Photo:

Save a screenshot of your new vehicle. Double Click on the blank picture(s) above to upload them.

Save a screenshot of your used vehicle. Double Click on the blank picture(s) above to upload them.

A Financing Chances are you wont have enough money to purchase the entire car right away, so were going to assume that you will be financing the purchase of the vehicle over 5 years. This means that you will make monthly payments for the next 60 months. Calculate your monthly payments by using this link: Auto Loan Calculator. Start off by selecting Total purchase price from the top. New Vehicle Total purchase price: $24,990 Payments are made: per month Trade allowance: $0 GST: 5% PST: 7% Payment (monthly): $350.14 Number of payments: 60 Interest rate: 5% Used Vehicle Total purchase price: $900 Payments are made: per month Trade allowance: $0 GST: 0% PST: 12% Payment (monthly): $9.66 Number of payments: 60 Interest rate: 7%

B Insurance Insurance premiums can vary based on the following factors: Location (urban versus rural) Rate classes (pleasure, commuting, business etc.) Claims history (based on driving record) Your vehicle (more expensive the vehicle, the more expensive the insurance) Extra coverage (Extended Third-Party Liability etc.)
Insurance Estimates Monthly Payments Vehicle Type Car Sports/Luxury Car Truck/SUV New 210 250 275 Used 185 195 200

New Vehicle: 275

Used Vehicle: 185

C Fuel The average young adult drives approximately 16,000 km per year. The current cost of gas is $1.25/L
Vehicle Type Hybrid Car Small Car Midsized Car Sports/Luxury Car Truck/SUV Fuel Economy (L/km) 0.04L/km 0.09L/km 0.15L/km 0.20L/km 0.28L/km Total (km/year) 16,000 16,000 16,000 16,000 16,000 Fuel Cost ($/L) 1.25 1.25 1.25 1.40 1.25 Cost of Fuel/Year ($) $800.00 $1800.00 $3000.00 $4480.00 $5600.00

Fuel Costs/Month Find your average cost of fuel/month by dividing the yearly cost by twelve. Enter it below for both your new and used vehicles. New Vehicle: $5600 per year $466.66 monthly Used Vehicle: $1800 per year $150 monthly

D Miscellaneous There are a lot of extra costs involved in operating a car. You need to renew your license every 5 years ($75.00). You need to purchase things like tires every few years ($1000.00 a set) for both summer and winter seasons. Oil changes usually are required every four months ($160.00/year) as well as periodic maintenance and repairs on your vehicle ($400.00/year). Add about $20/month for car washes. If you add up those expenses, the average person will spend approximately $500.00 a year on miscellaneous costs. Although these costs are often not a regular monthly occurrence, they are often unplanned for, and can really hurt your bank account if you havent budgeted for them. For your miscellaneous expenses you should budget approximately $50.00/month. New Vehicle: $43 per month Used Vehicle: $65 per month

Complete the amounts below by referring to the corresponding sections from above. Financing: Insurance: Fuel: Miscellaneous: Total Monthly Cost ($): $350.14 $275 $466 $43 $1,134 Financing: $9.66 Insurance: $185 Fuel: $150 Miscellaneous: $65 Total Monthly Cost ($) $409.66

Resources
New Vehicles Chrysler Dodge Ford General Motors Audi BMW Honda Hyundai Kia Mazda Mini Nissan Smart Subaru Suzuki Toyota Volkswagen Volvo Used Vehicles AutoTrader Autonet eBay Motors Used Cars Canada http://www.chrysler.ca/en/ http://www.dodge.ca/en/ http://www.ford.ca/ http://www.gm.ca/gm/ http://www.audi.ca/ca/ http://www.bmw.ca http://www.honda.ca/ http://www.hyundaicanada.com/ http://www.kia.ca/ http://www.mazda.ca/ http://www.mini.ca/ http://www.nissan.ca/en/ http://www.thesmart.ca/ http://www.subaru.ca/ http://www.suzuki.ca/ http://www.toyota.ca/ http://www.vw.ca/ http://www.volvocars.com/en-ca/

http://www.autotrader.ca/ http://www.autonet.ca/ http://cars.ebay.ca/ http://www.usedcarscanada.com/