Name:

* Please staple this sheet to the front of your final work.

In this project you will explore the world of owning and operating a vehicle. You will be selecting two vehicles that you will consider to purchase, one new and one used. Each vehicle will be examined for fuel, maintenance, insurance, registration, delivery, depreciation, and interest costs among other hidden costs. In the end you will objectively compare both vehicles in all categories, while comparing them to other forms of transportation and make an informed consumer decision as to which type of car and / or transportation is best for you!

RUBRIC:

SELECTING VEHICLES:

* List some things that are important to you in a vehicle. / 5* Make a list of the makes and models of vehicle you would / 8 consider buying. List some advantages and disadvantages of each vehicle. Use newspapers, magazines, or the internet (www.autotrader.ca)

and select one new and / 5 one used vehicle you would like to buy. Find pictures of these vehicles

and display them, along with the make, model, and price of each vehicle.

TOTAL: / 18 FUEL ECONOMY:

* Find the fuel economy of the two vehicles you have chosen to research. / 2 You can ask a local dealership, go to the web site:

autosmart.nrcan.gc.ca/pubs/fcg3_e.cfm, or estimate using the table on p.144.* Determine the type of fuel used in each vehicle along with the cost / 4 per litre for this fuel in the city you live in currently.* Assume you are driving 10 km each way to work and an average of 50 km / 8

each weekend. Calculate the total distance driven in one year, based on 50 weeks of driving to and from work and 50 weekends of driving. Then calculate the distance travelled for a two-week road trip to a destination in Canada. Choose a destination and establish the distance from your home. Complete a table like the one on pg.145 in your text. * Use your fuel economy figures for each of your vehicles and find the cost / 6 of fuel to estimate the number of litres used in one year and the total cost of fuel for one year for each of the vehicles.* Divide the total yearly fuel cost from your answers above by 12 to / 4 determine the average monthly cost for fuel for each vehicle.

TOTAL: / 24

Consumer Mathematics 30SProject #3

Owning & Operating a Vehicle

MAINTAINING A VEHICLE:

Here you must determine approximate costs for one year of repairs and maintenance foreach of the two vehicles you chose. You can research prices at a local automotive shopor estimate using the price list on pg.151 of your text.

* For the new vehicle you must change the oil and filters three times, replace the / 8 antifreeze once, replace the windshield wipers once, and have at least one tune-up.* For the used vehicle you must do all the above plus include one major repair. / 10

TOTAL: / 18

COSTS AND FEES for a new vehicle:

* Investigate costs of various options for your new vehicle you chose. Make a list of the options you would want on your new vehicle. / 5* Research and list freight charges or any other up-front charges. / 3* Calculate the sticker price. / 3* Research what the documentation fee would be. / 2* Assume you have a trade-in allowance of $5000. Calculate the total price of your new vehicle before taxes.* Assume you manage to negotiate a “deal” for 2% less than the sticker price. Calculate the total price before taxes. / 3* Calculate the total price including taxes (in your province). / 2

TOTAL: / 18

DEPRECIATION:

* Determine the depreciation and the resale values after each of the first three years for each of the vehicles you selected. * Also determine the total depreciation after three years.

> Assume a depreciation rate of 25% for the first year of a new vehicle.> Assume a depreciation rate of 10% a year after the first year for a minivan, truck, SUV and 15% a year after the first year for other vehicles.

TOTAL: / 10

COSTS OF A USED VEHICLE:

* Calculate the total cost for the used vehicle you selected. If you selected a vehicle for sale privately, include the costs for a lien search, a vehicle inspection, and for new brake pads.* Include all relevant taxes for your province.* You may consider the book value to be the same as the price asked for the vehicle.* If you selected a used vehicle for sale through a dealer, you need only include the relevant taxes.

TOTAL: / 10

FINANCING:

For your new vehicle, research the financing rates offered by the dealershipyou selected. Imagine that you have a down payment of 10% of the purchase price. Use the purchase price of the new vehicle to calculate the following:

* The down payment. / 2* The amount to be borrowed. / 2* The monthly payment. / 2* The total paid for the loan. / 3* The financing charge. / 2* The total paid for the vehicle, including your down payment. / 3

If you cannot find out the financing rate from a dealership, choose one of the followingoptions: 3.0% annually for 2 years or 5.5% annually for 4 years. Make sure to state the rate you chose.

For your used vehicle imagine you have saved 10% of the cost. Determine the amountyou will need to borrow from the bank to finance the balance (pay the rest). You may have to find out what your current bank interest rates are. Use the price of the used vehicle you chose to calculate the following:

* The down payment. / 2* The amount to be borrowed. / 2* The monthly payment. / 2* The total paid for the loan. / 3* The financing charge. / 2* The total paid for the vehicle, including your down payment. / 3

If you cannot find the interest rate for a loan from a bank, use either 6.5% annually over twoyears or 7.5% annually over four years. Make sure to state the percent and time period of the loan you are using.

TOTAL: / 28

PRESENTATION, ORGANIZATION:

* Neatness, organization of ideas, cut-outs, placements, logical reasoning…etc. / 20* Form of presentation: (out of possible 20 – one or more of the following)

> only paper / 5> presentation board (including paper…and assuming everything is neat) / 17> digital (powerpoint, web site, other…etc.) / 20

* Presentation to the class (organized, clear, and 7 minutes or less) BONUS / 10

TOTAL: / 40

GRAND TOTAL / 166 = %