Buying a Car
By Haris Mohamedy
My Budget
If I get $300 a week I should get $15,600 per year.
($300 per week)(52 weeks in a year)
Which Car?
I really like BMWs.
Which Kind of BMW?
A new one is probably to expensive.I’ll get a used one.Maybe a 2006 3.25i. This midsized car
costs $25,000.
The 2006 BMW 3.25i
This car is fully loaded with features like a sunroof, Bluetooth, 6 stick manual, alloy wheels, and the basics so I do not need any enhancements.
Yearly Expenses
I will need to pay for fees, gas, insurance, maintenance, and a loan.
Fees for License and Registration
A car also has fees to pay.
For all cars fees would be $75.
Yearly Expenses
Fees for License and Registration
$75.00
GasI also need to pay gas.
Every week I’ll drive to school and back, run errands, and sometimes go out.
Altogether that is about 30 miles a week.
To figure out the number of miles I drive every year, I multiply the number of miles per week by 52 (number of weeks in a year.)
(30)(52)=1,560 miles
So I would travel 1560 miles a year and would get about 25 mpg.To get the number of gallons I use every year I should divide the number of miles by
the mpg.
1560/25=62.4 gallons
Since I pay the current gas price ($2.99) for each gallon.I would multiply $2.99 by 62.4.
(2.99)(62.4)=$186.576
Round this to $186.58
Yearly Expenses
Fees for License and Registration
$75.00
Gas $186.58
Insurance
I would need to pay $2,300 for my midsized car.
Yearly Expenses
Fees for License and Registration
$75.00
Gas $186.58
Insurance $2,300.00
Maintenance
For a midsized car maintenance would be about $450.
Yearly Expenses
Fees for License and Registration
$75.00
Gas $186.58
Insurance $2,300.00
Maintenance $450.00
Loan
I decided my loan should be for 3 years or 36 months.
The formula to figure out the finance charge is:
A(N+1)(APR)2P
Loan
A(N+1)(APR)2P=
25,000(36+1)(0.07)2(12)
=25,000(37)(0.07)
24=
64,75024=
2,697.92 (Rounded)
Loan
My total finance charge is $2,697.92. I added that to the amount I’m borrowing ($25,000).
Then I got $27,697.92.I divided that by 36 for the monthly payment
and I got $769.39.To get the yearly payment I multiplied it by
12. I got $9,232.64.
Yearly Expenses
Fees for License and Registration
$75.00
Gas $186.58
Insurance $2,300.00
Maintenance $450.00
Loan Payment $9,232.64
Total Yearly Cost
My budget is $15,600.
$75.00+$186.58+$2,300.00+$450.00+$9,232.64=$12,244.22
$12,244.22<$15,600
Conclusion
$12,244.22<$15,600
Since the car fits my budget it is perfect for me.
THANK YOU FOR LISTENING!!!
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