You will now need to research the costs involved with buying a vehicle. There are two parts to the assignment. You will need to find a used vehicle and a brand new vehicle and price out the costs of buying either one. Download the Buying a Vehicle assignment sheet below. When you are done you will choose which vehicle you can afford and include the costs in your Budget Spreadsheet under the Mortgage tab. Use the links below to help you search.
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Estimated Value of the VehicleOne really valuable resource that you might want to use for determining the value of your vehicle is the Kelly Blue Book website. Make sure you are using the Canada site and not the American. Once you enter in the basic information for the vehicle you want to buy or sell in the future, it will give you an estimated value of the vehicle. This can be really helpful to determine if you are paying a fair price or selling it at a fair price. Look up the vehicle you found online and see if it's priced appropriately.
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Calculate your Car Insurance PaymentsEvery vehicle on the road requires insurance in the event that you cause or get in an accident or are injured or injure someone in the process. The cost of the insurance ranges based on the age and type of vehicle (truck, sport car, etc) and if you have had previous accidents that affect your safety rating. In Saskatchewan, every year you drive safely you earn a discount on the cost of the insurance for your vehicle. This can add up to a huge savings once you develop more skill and confidence behind the wheel. Use the SGI link to calculate the cost of insurance for the vehicle you have chosen and include the information in the assignment.
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Estimate your Fuel ExpensesFuel costs are another significant expense for a vehicle every month. Fuel can vary significantly based on your driving habits and amount of driving you do. Use the chart in the assignment to help you estimate the cost of fuel for your vehicle.
The only other major cost for owning a vehicle is maintenance. This is often overlooked and can vary significantly depending on the age of your vehicle and how well you perform regular maintenance on it. It may only cost a few hundred dollars every few months for oil changes and filters, or it could cost you thousands if something breaks or fails. Since maintenance can be very sporadic, it will be too difficult to determine the cost so we aren't going to worry about it for this assignment. |
Calculate the Car Loan Payments
Once you have found a brand new car that you would like to buy use the car loan calculator link to the left again. You want to have the price including the taxes and levies on the vehicle. Follow the instructions on the Buying a Vehicle assignment sheet to help you fill in the information properly.
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