Reality Check

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Reality Check
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Buying a car that is Affordable

• Determine a reasonable figure you can afford to
  pay each month for owning and operating a car.

3
Cost of buying the Car

• Purchase Price
• Taxes
• License
• Registration fees
• Bank fees
• Other

4
Cost of Operating a Car

• Insurance
• You must have insurance before you can legally
  operate a car. The type of car will affect the
  amount of insurance you pay.
• Calculate the monthly rate by dividing the
  yearly rate by 12. Add this to your monthly
  payment.

5
Gasoline

• Determine your estimated monthly gas expense.
• Estimate the number of kilometers you expect to
  drive per year. (Ask friends or family members
  CAA estimates 20 -25 000 km)
• Using current gasoline prices find your estimated
  monthly cost.
• Add this to your monthly payment.

6
Oil Changes

• Oil changes are recommended every 6000 km.
• Using your estimated yearly kilometers determine
  your monthly cost of oil changes.
• Add this to your monthly payment.

7
Tires

• The actual cost of tire maintenance and
  replacement varies greatly, however the estimated
  cost is 0.85 cents per kilometer.
• Use your estimated yearly kilometers to determine
  a yearly dollar value for tires.
• Add this to your monthly payment.

8
Other Maintenance

• This will vary according to the age of a car.
• An industry study estimates this figure to be
  an average of 1.75 cents per kilometer.
• - Use your yearly kilometers to determine a
  monthly cost.
• - Add this to your monthly payment.

9
Other

• Add any other expenses you feel will be
  necessary. Motor Vehicle Inspection Car washes,
  stereo,

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Assignment

• Determine the total monthly cost of owning and
  operating your vehicle.
• Display this information in a spread sheet and at
  least one other type of graph.

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TOTAL MONTHLY COST OF OWNING AND OPERATING A CAR TOTAL MONTHLY COST OF OWNING AND OPERATING A CAR TOTAL MONTHLY COST OF OWNING AND OPERATING A CAR
     
  Car A Car B
     
Fixed Costs    
Monthly Payment 500 200
Insurance 200 100
License 50 40
     
  750 340
     
Flexible Costs    
Gasoline 100 60
Oil 20 5
Tires 20 20
Maintenance 20 20
Other 5 10
     
  165 115
     
Total Monthly Cost 915 455
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