Purchasing a Vehic

Your first consideration when purchasing a new vehicle shou

common sense) please list the following:
1. At least 2 advantages purchasing a new vehicle.
It will be brand new and not used by anyone else

2.At least 2 disadvantages of purchasing a new vehicle.

it will be more expensive and more paperwork and stuf

Decide
vehicles thatthat
you will
plan will
to purchase:
onepurchase:
new and one used.
d
Decide
onon22 vehicles
you
plan to
oneThey
new
picture of the vehicle and a link to the dealership page or ad

New Vehicle: you have a $25,000 to spend on this vehicle. If your price after taxes is more than
to find something less expensive. This vehicle must be from a dealership (check the Resources
bottom of this assignment for links).

Image:

Website Link:
New:

Vehicle Make:

Vehicle Model:
Year:
Purchase Price:
Taxes (12%):
Total Purchase Price:

< img src="http://b.scorecardresearch.com

2000 Pontiac Grand Am

$1,800.00
12%
$2,016.00

Financing

Chances are you wont have enough money to purchase the entire car right away, so we
assume that you will be financing the purchase of the vehicle over 5 years. This means t
monthly payments for the next 60 months.
Total Purchase Price:
Interest Rate:
Monthly Payment
Total Cost
Loan Cost

$2,016.00
5.00%
$38.04
$2,282.66
$266.66

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 - Per Month
Vehicle type
Monthly Cost
Car
$210.00
Sports/Luxury Car
$250.00
Truck/SUV
$275.00
Your Vehicle Insurance Cost:

$210.00

Fuel
The average young adult drives approximately 16,000 km per year.
The current cost of gas is about $1.25/L

Vehicle Type
Hybrid Car
Small Car
Midsized Car
Sports/Luxury Car
Truck/SUV

Your Vehicle Fuel Cost Per Month:

$150.00

Miscellaneous

Miscellaneous
There are a lot of extra costs involved in operating a car. You need to renew your license every 5 y
required every four months ($160.00/year) as well as periodic maintenance and repairs on your ve

If you add up those expenses, the average person will spend approximately $500.00 a year on mis
account if you havent budgeted for them. For your miscellaneous expenses you should budget ap

Miscellaneous Costs:

$50.00

Total Cost Per Month

Monthly Payment
Insurance
Fuel
Miscellaneous
Cost Per Month

$38.04
$210.00
$150.00
$50.00
$448.04

Total Cost Over 5 Years:

$26,882.66

Cos
$1,200.00
$1,000.00
$800.00
$600.00
$400.00

$1,200.00
$1,000.00
$800.00
$600.00
$400.00
$200.00
$0.00

Monthly Payment

Insuranc

Conclusion: Which vehicle are you more likely to purchase, new or used? In a brief para

Resources:
New Vehicles
Chrysler
Dodge
Ford
General Motors
Audi
BMW
Honda
Hyundai
Kia
Mazda
Mini
Nissan
Smart
Subaru
Suzuki
Toyota
Volkswagen
Volvo

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/

a Vehicle

a new vehicle should be the advantages and disadvantages of buying

3. 2. At least 2 advantages of purchasing a u

It wont be as expensive and thats all i can think of

4. 2. At least 2 disadvantages of purchasing

there could be something wrong with it and it will h

new and one used.

do and
not have
to be
the exact
same vehicle.
purchase:
oneThey
new
one
used.
They
do not have to be the exact
alership page or add.

price after taxes is more than $25,000 you need

ship (check the Resources section at the

Used Vehicle: you have a $5,000 spending limit o

to find something less expensive.

Image:

Website Link:
Used:

tp://b.scorecardresearch.com/p?c1=2&c2=6034663&cv=2.0&cj=1" />

Grand Am

ntire car right away, so were going to

over 5 years. This means that you will make

sive the insurance)

year.

Chances are you wont have enough money to

that you will be financing the purchase of the v
payments for the next 36 months.

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

renew your license every 5 years ($75.00). You need to purchase things like tires every few years ($1000.00 a
nance and repairs on your vehicle ($400.00/year). Add about $20/month for car washes.

mately $500.00 a year on miscellaneous costs. Although these costs are often not a regular monthly occurrence
penses you should budget approximately $50.00/month.

Cost of New Vehicle vs. Used Vehicle

Payment

Insurance

Fuel

Miscellaneous

Cost Per Month

new or used? In a brief paragraph use evidence form the worksheet to support your decision.

Used Vehicles
AutoTrader
Autonet
eBay Motors
Used Cars Canada
Castanet

http://www.autotrader.ca/
http://www.autonet.ca/
http://cars.ebay.ca/
http://www.usedcarscanada.com/
http://classifieds.castanet.net/cat/wheels/

d disadvantages of buying new or used. Using a search tool (or

st 2 advantages of purchasing a used vehicle.

as expensive and thats all i can think of

st 2 disadvantages of purchasing a used vehicle.

d be something wrong with it and it will have more km

not have to be the exact same vehicle. Make sure to include a

cle: you have a $5,000 spending limit on this vehicle. If your price after taxes is more than $5000 you need
mething less expensive.

Link:
Vehicle Make:

Hyundai

Vehicle Model:
Year:
Purchase Price:
Taxes (12%):
Total Purchase Price:

Elantra
2015
$16,519.00
12%
$18,501.28

are you wont have enough money to purchase the entire car right away, so were going to assume
will be financing the purchase of the vehicle over 3 years. This means that you will make monthly
s for the next 36 months.
Total Purchase Price:
Interest Rate:

$18,501.28
7.00%

Monthly Payment
Total Cost
Loan Cost

$571.27
$20,565.57
$2,064.29

Insurance Estimates - Per Month

Vehicle type
Monthly Cost
Car
$210.00
Sports/Luxury Car
$250.00
Truck/SUV
$275.00
Your Vehicle Insurance Cost:

$210.00

Cost of Fuel/Year
($)
$800.00
$1,800.00
$3,000.00
$4,480.00
$5,600.00

Cost of Fuel
Per Month
$66.67
$150.00
$250.00
$373.33
$466.67

Your Vehicle Fuel Cost Per Month:

$150.00

gs like tires every few years ($1000.00 a set) for both summer and winter seasons. Oil changes usually are
th for car washes.

e often not a regular monthly occurrence, they are often unplanned for, and can really hurt your bank

Miscellaneous Costs:

Monthly Payment
Insurance
Fuel
Miscellaneous
Cost Per Month

$100.00

$571.27
$210.00
$150.00
$100.00
$1,031.27

Total Cost Over 3 Years:

$37,125.57

Used Vehicle

New Vehicle
Used Vehicle

iscellaneous

New Vehicle
Used Vehicle

Cost Per Month

et to support your decision.

ng a search tool (or

ke sure to include a

er taxes is more than $5000 you need

ht away, so were going to assume

eans that you will make monthly

er seasons. Oil changes usually are

, and can really hurt your bank

New Vehicle
Used Vehicle

New Vehicle
Used Vehicle