How much value do you lose on the purchase of a new automobile
For this lesson’s assignment, you will select one of the activities below to complete and submit to your instructor. Read through each option before making your selection. Both options require Internet research. Reach out to your instructor if you have questions on appropriate sites for your research.
CHOICE ONE: THE TRUE COST OF OWNERSHIP
Instructions:
How much value do you lose on the purchase of a new automobile? Is the amount the same for every car?
Select a new car to research. Locate reliable resources to assist you in finding out how much money you can lose in a five-year cycle.
Open The True Cost of Ownership .doc
or .rtf.
Calculate the costs for each year of the first five years of ownership in the following categories:
Depreciation
Insurance
Taxes/Fees
Fuel
Maintenance
Place the information in your document.
Calculate the same information on the same make of car but on one that is two years older, and place that information in your document.
Answer the following questions based on your research and the information in the chart:
How much does it cost per mile to drive the car? (Use an annual mileage of 15,000 miles.)
How much could you save by buying the two-years-older model?
What is your savings expressed in percentage for each category?
In which categories do you see the biggest loss?
Why is there not much change in the other categories? What does that tell you about the older model?
Answer preview How much value do you lose on the purchase of a new automobile
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