Hot Wheelz Project
Liam O'Hara Hour 5
Car Payment Budget
What I Can Afford
3 Year: $8,499.67
4 Year: $11,127.25
5 Year: $13,658.27
Name: Used 2008 Smart Fortwo Passion
Car Found: http://www.autotrader.com/cars-for-sale/vehicledetails.xhtml?zip=33131&endYear=2009&modelCode1=FORTWO&showcaseOwnerId=0&startYear=2006&makeCode1=SMART&listingType=used&listingTypes=used&searchRadius=0&maxPrice=8000&showcaseListingId=0&mmt=[SMART[FORTWO[FORTWO%257Cpassion]]]&minPrice=7000&listingId=371964046&Log=0
Monthly Rates for Different Payments
3 Year Monthly Rate: $235.36- I can afford this.
4 Year Monthly Rate: $179.77- I can afford this.
5 Year Monthly Rate: $146.43- I can afford this.
What I Will Actually Spend
I chose a 3 year loan therefore I will pa:
(235.36)(12)(3)= $8472.96 over the course of the loan
I chose the 3 year loan because it is the shortest amount of time that it could take me to pay off all of the payments on my car. I am able to make this payment work because in my budget I am able to spend $8499.67 on transportation payments, and I will only end up spending $8472.96 on this car.
The $4000 Rebate Deal would be buying for $24662.28 at $2055.18 per month.
Therefore, the Zero Percent Interest offer is a better deal for Mrs. O'Connell.