CLC 11 finance lesson

1. Buying a car
PLANNING 10

2. My 60th birthday is not
that far away.
Getting my retirement
car is on my bucket
list
The price of my dream
car is $72,640.00.
But what does it really
cost to own the car of
your dreams?
Should I buy new or
used?

3. How old are cars getting?
 As cars get more reliable Canadians are
holding onto their vehicles for longer than ever
before. The average age of cars and light
trucks is now 11.5 years old, according to a
new report from IHS Automotive.

4. In addition to better
reliability, cars are
getting older because
North Americans
bought far fewer new
cars in the years
following the 2008
Recession, as concerns
lingered about
unemployment and the
strength of the
economy.

5. Even as consumers have started purchasing
new vehicles again, they’re still holding onto
their older ones. The average length of
ownership of a new vehicle reached 6.5 years
in the first quarter of 2015, more than two
years longer than in 2006. The number of
cars more than 12 years old continues to
grow and is expected to increase 15 percent
by 2020.
The number of cars on the road hit a record
32,564,708, posting a 2.1 percent increase
over last year, driven by the purchase of new
cars. IHS expects that volume of cars less
than 5 years old will increase by 24 percent
over the next five years.
Consumer sales of autos were on pace to rise
4.2 percent this month, according to TrueCar,
compared to July of 2014, thanks to
increased demand, summer sales events and
the growing popularity of premium brands.

6. Go to one of the major car manufacturer’s websites and build
your own car. Ie www.ford.ca
You can choose any car you like and build with any options you
want. You have a budget of $50,000 including tax and fees
When you have built your car, print out the final spec sheet
with options. Also print off the full price with taxes and fees.

7. MAKE WEB ADDRESS
Acura www.acura.ca
Audi www.audicanada.ca
BMW www.bmw.ca
Buick www.gm.ca
Cadillac www.gm.ca
Chevrolet www.gm.ca
Chrysler www.chrysler.ca
Dodge www.dodge.ca
Ford www.ford.ca
GMC www.gm.ca
Honda www.honda.ca
Hummer www.gm.ca
Hyundai www.hyundaicanada.com
Infiniti www.infiniti.ca
Isuzu www.gm.com
Jaguar www.jaguar.ca
Jeep www.jeep.ca
Kia www.kia.ca
Land Rover www.landrover.ca
Lexus www.lexus.ca
Lincoln www.lincolncanada.com
Mazda www.mazda.ca
Mercedes-
Benz
www.mercedes-benz.ca
Mini Cooper www.mini.ca
Mitsubishi www.mitsubishi-motors.ca
Nissan www.nissan.ca
Pontiac www.gm.ca
Porsche www.porsche.com/canada
Saab www.gm.ca
Saturn www.gm.ca
Smart www.thesmart.ca
Subaru www.subaru.ca
Suzuki www.suzuki.ca
Toyota www.toyota.ca
Volkswagen www.vw.ca
Volvo www.volvocanada.com
Here is a list
of websites
for buying
new cars
online in
Canada

8. So now is the time to find out what it really costs to own the car you choose.
Go to http://www.free-online-calculator-use.com/car-depreciation-calculator.html
Enter the numbers and calculate your total depreciation. Save your work and paste the pag
to a word document
Now go to http://www.bikesatwork.com/blog/the-real-cost-of-car-ownership
Calculate your cost of ownership. Copy the page when done and post to a word document.
Post both pages to your website

9. Now it is time to reflect on car ownership.
Write a journal entry on your websites and discuss what you now know about
owning a car and the costs involved.
What would be the optimal time to buy a car?( year of car ) Why?
What kind of budget do you need to afford a new car?
Is there an advantage to owning a new car over a used car?
What is your motivation to owning a vehicle as you get older?
Do you think I should I buy that brand new corvette just before I retire?