Buying a Car
Shelby Hudson
Mrs. Purtle
Economics
24 Feb. 2014
Buying A Car
There are many things to consider when purchasing a brand new vehicle. These things include the model of the car, the features that come with the vehicle, and most importantly the price. While searching for a new car I learned that there are many options to choose from depending on the various price ranges, there are several different payment options available for car buyers, and also the Internet serves as a helpful tool when trying to compare vehicles.
As I searched for a car that fit my price range of $30,000, I noticed there were several vehicles to choose from but not all of them had the extra features I wanted, such as four doors, navigation system, a moon-roof, gas mileage ranging from 20 to 35mpg. I finally came across the 2014 LE Camry that gets 25mpg in town, and 35mpg on the highway and includes all the features I wanted. The Camry only cost $22,680, which made it an easy decision, however I still needed to figure out a payment plan.
When I researched payment options I learned that if I paid the car off in 5 years or 60 months, with an interest rate of 6% a year my monthly payment would be $299.25, however I will have paid a total of $2476.15 in interest. If I paid the car off in 5 years with a lower interest rate of 2.79% my monthly payment would be $276.70, and I would pay a total of $1122.71 in interest, this would lower my overall cost. As I furthered my research on payment plans, I learned that if I was to pay my car off in 4 years or 48 months with an interest rate of 2.79% my monthly payment would be $341.16 and I would still have to pay a total of $897.76 in interest. I also learned that if I paid my car off in 4 years with an interest rate of 6% my monthly payment would be $363.52 and I would pay $1970.19 in overall interest. By comparing several payment options I learned that by choosing the shortest payment schedule along with the lowest interest rate, I would be able to
Mrs. Purtle
Economics
24 Feb. 2014
Buying A Car
There are many things to consider when purchasing a brand new vehicle. These things include the model of the car, the features that come with the vehicle, and most importantly the price. While searching for a new car I learned that there are many options to choose from depending on the various price ranges, there are several different payment options available for car buyers, and also the Internet serves as a helpful tool when trying to compare vehicles.
As I searched for a car that fit my price range of $30,000, I noticed there were several vehicles to choose from but not all of them had the extra features I wanted, such as four doors, navigation system, a moon-roof, gas mileage ranging from 20 to 35mpg. I finally came across the 2014 LE Camry that gets 25mpg in town, and 35mpg on the highway and includes all the features I wanted. The Camry only cost $22,680, which made it an easy decision, however I still needed to figure out a payment plan.
When I researched payment options I learned that if I paid the car off in 5 years or 60 months, with an interest rate of 6% a year my monthly payment would be $299.25, however I will have paid a total of $2476.15 in interest. If I paid the car off in 5 years with a lower interest rate of 2.79% my monthly payment would be $276.70, and I would pay a total of $1122.71 in interest, this would lower my overall cost. As I furthered my research on payment plans, I learned that if I was to pay my car off in 4 years or 48 months with an interest rate of 2.79% my monthly payment would be $341.16 and I would still have to pay a total of $897.76 in interest. I also learned that if I paid my car off in 4 years with an interest rate of 6% my monthly payment would be $363.52 and I would pay $1970.19 in overall interest. By comparing several payment options I learned that by choosing the shortest payment schedule along with the lowest interest rate, I would be able to