Car Financing

Hour 5 Algebra 2 Project by Maiya Focht

My Yearly/Monthly Budget

-Taxes: $16250/ $1354.16

-Housing: $22750/ $1895.83

-Food: $9750/ $812.50

-Savings: $3250/ $270.83

-Transportation payment: $6500/ $541.66

-Other transportation: $3250/ $270.83

-Medical: $1950/ $162.50

-Miscellaneous: $1300/ $108.33

What Can I afford?

Below are the amounts I can spend on a car over three different loan time periods.

Used 2014 Volkswagon Jetta

This sleek black car comes used with 32,926 miles and with a price of only $19,600.00.

WHEN CAN I AFFORD MY CAR?

Actual amount I decided to spend on the car loan:

I didn't chose the three year loan because of obvious reasons, I could not afford it. But I didn't choose the five year loan plan because of interest costs, with interest duration the overall cost of the car could've been much higher than the 4 year plan. Taking into account the fact that I couldn't afford the 3 year plan, and for 5 years it would simply take much longer to pay off which would be a pain, I chose the four year plan.


Which means over the course of the loan I will pay:

$21,137.28

Bonus

Between the rebate and the 0 percent interest the better option is the rebate, because the monthly rate is lower by $127!