Hot Wheelz Project
Liam O'Hara Hour 5
Salary: $30,000
Yearly/Monthly Budget:
Taxes: $7500/$625
Housing: $10,500/$875
Food: $4500/$375
Savings: $1500/$125
Transportation
Payment: $3000/$250
Other: $1500/$125
Medical: $900/$75
Miscellaneous: $600/$50
Car Payment Budget
Yearly: $3000
Monthly: $250
What I Can Afford
3 Year: $8,499.67
4 Year: $11,127.25
5 Year: $13,658.27
The Car
Car Information
Name: Used 2008 Smart Fortwo Passion
Cost: $8,000
Mileage: 11,500
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.
Extra Credit
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.