Mitchell Perdue

Vega

Mth. 105

Car Costs Comparisons

Points;

1. Total cost after loan

A (Summary): The mean of the total cost of a car after a loan was $15,605.84.

This deviated 11,205.6552; with a range of $3,084 to $26,0690 I feel as if this is a

reasonable deviation. I paid $11,912 for my car, which is $3,693.84 away from the class

average. $3,693.84 is 7,511.8152 away from the deviation. This is fairly less than most

of the other students’ payments on their cars. Based on our class statistics, I feel as if I

got a pretty good deal on the car. According to http://thinktankblog.org/2010/03/the-

costs-of-owning-a-car the national average price of a car is $28,400. My car is $16,488

away from the price I paid which contributes to my opinion that I got a good deal on my

car.

B (to get a loan or not): Out of the class I was the only one to not take out a loan.

Based on the information, I feel as if this is the right decision. The majority of the class

that did take out a loan paid more than the original price by the end of the loan as

represented in the following graph:

 3.84%

11.5%

84.6 %

This graph shows that over half of the class paid more than the original. The

students that paid more than the original cost of the car is 73.1% more than those that

paid less. I am the 3.84 % that paid the same as original because I did not take out a loan.

While it shows that there is some chance that a student will pay less, this graph shows

that it is risky to take out a loan. Personally, I believe I made the right decision in not

doing so. There are other factors of wealth and the necessity for a car or other items at

the time of purchase, but statistically, this shows that taking out a loan makes it so that

you have to pay more. The best idea, or the most perfect situation, would be to wait until

you have the money to buy the car without a loan.

2. Insurance
 I pay a monthly insurance of $111.13. The mean for the insurance of the students

is $100.93, which deviates 37.622. With a range of $0 to $364.16 this is a small

deviation. I am in the top 9 highest paying insurances out of 26 people, which could be

better but is not awful. My insurance is only $10.2 above the class average. According

to http://thinktankblog.org/2010/03/the-costs-of-owning-a-car the national annual average

cost of insurance is $955, which is $79.58 monthly. My monthly insurance is only

$33.55 away from this national average, so my monthly insurance is reasonable.

3. Conclusion

Several other unknown variables of why I may have or may have not got the best

deal on the car include

1. How often my car is damaged

2. How well my car drives

3. How often I need to replace my fuel

4. My cars mileage

5. Cars tires

6. Registration

7. License

etc…

But with the information I have from the class, I understand that I got a good deal
on my original price, I made a smart decision not taking out a loan and I have a

reasonable monthly insurance. Overall, I believe I got a good deal on my car.