Buying a Car
Buying a Car
Project Two (Numbers: Budgeting and Credit)
Can you afford to buy your ideal car?
Clarify:
Our grandparents have given us $3400 to buy a car that is in good condition. The car has to be over the amount of $10 000. I have to prove that I can afford the car to get the personal loan and also have to prove that I can run it as well as just purchase it. My annual wage is $23 000.
Some factors when buying a car could include:
i. Can we get insurance?
ii. Can we afford to run the car?
iii. Get a RAC report on the car to see whether there is anything wrong with it.
Some cost involved in buying a car could be:
i. Running Cost
ii. Actual car
iii. Insurance
iv. RAC report
v. Transfer fee
I am going to take out my loan at ANZ Bank as I have researched that they have the cheapest rates.
Some assumptions that I have made are:
i. The cost of fuel is 89 cents per litre
ii. I am living with my parents
iii. I have a mobile phone bill every month
iv. My annual income has already been tax reduced
v. I already have $2000 of my own money saved
vi. And I am 27 years of age.
Other living expenses could include:
i. Spending money
ii. Food – Take away
iii. Bills – Mobile Phone
Choose:
It would cost me $2082.60 on fuel to run my car for one year.
89 cents per litre – 10L/Km = 450Km per week.
.89 * 45 = $40.05 = $40.05 * 52 = $2082.60
The way I would set out my plan would be:
Income per week =
Board – from income, - phone bill, - repayments, - spending money =??? And then use the rest on maintenance on the car + fuel cost.
Use:
The Car costs $13 990 and I have $5300. I am going too take out a loan of $10 000 of a period of one year. To purchase my car it would cost overall $11000 + $150 transfer fees.
The way I will repay will be by:
$23 000/52 = $442.30
Repayment = $11 000/52 = $211.55
$442.30 – Board/ per week = $50 – Phone bill = $10 per week = $170.75 – Spending money = $100 = $70.75 =
$70.75 - $40.05 for fuel = $30.70 which can [next page]