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Context 12 - Buying a Car

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Last updated almost 2 years ago
29 questions
Note from the author:
MMR Resources
Make a copy of this Google Sheet to calculate the total cost of your loan.
Resource List:
  • Better Money Article
  • Top Mistakes When Buying a Car
  • Turn Your Car Payment into a Million Dollar Retirement
  • The Truth About Buying a Car
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Question 29
29.

What is your choice? Explain your reasoning. (Give at least three good reasons to convince your parents.) Acknowledge any cons that exist and explain why your pros outweigh your cons. Write at least 2 paragraphs. Look up persuasive writing tips to help you make your case. Include supporting evidence that you have collected.

Question 1
1.

Screenshot a picture of a cheap (under $5,000) car you found for sale online and paste it here.
(You may want to go ahead and paste this into #9 as well)

Question 2
2.

What is an IRA?

Question 3
3.

What does it mean for money to compound annually?

Question 4
4.

How much will you deposit? How much interest will you earn after 25 years? How much total will you have saved for retirement?
IRA Calculator

Question 5
5.

What is the average cost to repair your car? (You'll need to Google this information)

Question 6
6.

Estimate the amount it will cost to insure your car? Explain the type of insurance you will get (full coverage vs. liability)

Question 7
7.

Pros of making choice A (buying a cheap car and putting the rest in an IRA)

Question 8
8.

Cons of making choice A

Question 9
9.

Screenshot a picture of a cheap (under $5,000) car you found for sale online and paste it here.

Question 10
10.

Which bank are you going to use to save your money? What is their interest rate on a savings account? Is there anything else that it’s important to note about the savings account?

Question 11
11.

What kind of interest does a savings account earn (compound vs. simple)? Why is that important?

Question 12
12.

How much will you deposit? How much interest will you earn by the time you enroll in college? How much will you have in total?
Savings Acct Interest Calculator

Question 13
13.

What is the average cost to repair your car? (Hint: This is the same as #5)

Question 14
14.

Estimate the amount it will cost to insure your car? Explain the type of insurance you will get (full coverage vs. liability)
(Hint: This is the same as #6)

Question 15
15.

Pros of making choice B (buying a cheap car and putting the rest in a savings account)

Question 16
16.

Cons of making choice B

Question 17
17.

Screenshot a picture of an expensive (over $10,000) car you found for sale online and paste it here.

Question 18
18.

Which bank are you going to use to get your car loan?

Question 19
19.

What is the interest rate on your loan? What is the length of the loan? Is there anything else that it’s important to note about the loan?
Auto Loan Calculator (You'll want this for #24 as well)

Question 20
20.

What kind of interest does the loan accrue? Note: there are different types of car loans https://roadloans.com/blog/different-types-of-car-loans-explained

Question 21
21.

What’s the difference between interest rate and annual percentage rate (APR)?

Question 22
22.

What does it mean that auto loans are amortized?

Question 23
23.

Are there any fees associated with your loan? Is there anything else about your loan that needs to be noted.

Question 24
24.

What’s the total you will pay in interest for the life of the loan? Use the calculator results from #19 to help.

Question 25
25.

What is the average cost to repair your car? (Google will help you find this)

Question 26
26.

Estimate the amount it will cost to insure your car? Explain the type of insurance you will get. Note: Insuring a car that has a loan on it is more expensive.

Question 27
27.

Pros of Making Choice C (taking a loan out for a reliable car)

Question 28
28.

Cons of Making Choice C