Process

Check off when completed. If you have any questions during the duration of this activity, stop and ask the instructor (if available) for assistance. _ Log onto your computer and open up an Internet browser. _ Type in the following Internet address - www.autotrader.com. _ Look for possible vehicles. Remember that you only have $5,000 to spend on the car and expenses. _ Note the manufacturer, make, model, year, and engine size. _ Note the cost of the vehicle. _ Call your local Department of Motor Vehicles (DMV) or check online for the cost of license plates and registration for the specific vehicle you are researching. _ Calculate the state sales tax (if applicable) on the vehicle. This tax is often collected by your local DMV if you bought a vehicle from a private party. // Sales Tax = Vehicle Cost X Sales Tax Percent in decimal form. // _ Complete research to identify the car’s fuel efficiency in miles per gallon. _ Visit or call local gas stations to find out the average cost per gallon of fuel. _ Calculate 6-month expenditure on fuel costs if you travel 1,000 miles a month. // Fuel Costs = (6,000 miles/Fuel Efficiency) X Price of Fuel per gallon. // _ Call a local insurance agent or check online for the cost of a six-month liability policy. Your parents want you to have 100/300/50 coverage. Gather at least three quotes from different insurance companies. Choose a policy from a company that best meets your needs. _ Budget for two oil and filter changes in the six-month period. Include labor costs if you do not intend to complete the service. _ Budget for one major tune-up in the six-month period. You will need to calculate the cost for spark plugs, spark plug wires, distributor cap, distributor rotor, air filter, and fuel filter. (Note: A distributorless ignition system does not have a cap or rotor.) Include labor costs if you do not intend to complete the service. _ Calculate your total car expenditures. To do this, add the following. _ Vehicle Price _ Plates and Registration _ Sales Tax on Vehicle _ Fuel Costs for Six Months _ Insurance for Six Months _ Two Oil Changes _ Tune-Up _ Unexpected Repairs _ Compare your total car expenditures with the amount of money ($5,000) that is available. You have not saved much money for your first vehicle, but you have recently started working a part time job clearing $7.00 an hour. Your parents have offered to give you $1,000 towards your first vehicle and will cosign a loan with you for another $4,000. Now you have $5,000 to spend towards a car. Your job should cover the loan payment and the costs for the monthly expenses. You purchased a vehicle for $5,000 including the sales tax. You are curious to calculate how many hours a month you need to work to keep your car operational. Your goal is to calculate the average monthly cost of owning this vehicle. Use a blank sheet of paper or a computer spreadsheet program to organize the data that you collect. Check off when completed. If you have any questions during the duration of this activity, stop and ask the instructor (if available) for assistance. _ Use an online loan payment calculator (keyword: loan calculator) to determine the monthly payments on a $4,000 loan for 48 months at the current interest rate. _ Call a local insurance agent or check online for the cost of a six-month liability policy. Your parents want you to have 100/300/50 coverage. Since you have a loan on the car, the lending institution will also require collision and comprehensive coverage. Gather at least three quotes from different insurance companies. Choose a policy from a company that best meets your needs. _ Calculate the cost of the insurance policy on a monthly basis. // Insurance Cost per month = Insurance Cost for a six-month policy/6 // _ Complete research to determine the fuel mileage per gallon (mpg) of the chosen vehicle. _ Visit or call gas stations to determine the cost of fuel per gallon. _ Calculate your monthly expenditure on fuel if you travel 1,000 miles a month. // Fuel Cost per month = (1,000miles/mpg) x Price of Fuel per gallon // _ Pro-rate (per month) the cost for licensing and registering your vehicle. Call your local Department of Motor Vehicles (DMV), Motor Vehicle Administration (MVA), or check online for the cost of license plates and registration for the specific vehicle you are researching. // License and Reg. Cost per month = Annual Cost/12 months // _ Traveling 1,000 miles a month will determine that your vehicle will need an oil change every 3 months. Pro-rate (per month) the cost of an oil change. // Oil Change Cost per month = Oil Change Price/3 months // _ Pro-rate (per month) the cost of a tune up. You will need to calculate the cost for spark plugs, spark plug wires, distributor cap, distributor rotor, air filter, and fuel filter. (Note: A distributorless ignition system does not have a cap or rotor. Include labor costs if you do not intend to complete the service.) Estimate that your vehicle will need a major tune-up every two years. // Tune-Up Costs per month = Cost for a Tune-Up/24 months // _ Pro-rate (per month) the cost for one set of tires. With your driving habits, you will need to buy a new set of tires every four years. Check online or with a local tire distributor for the cost to replace the tires for your vehicle. You want to buy 50,000-mile tires with the following minimum UTQG ratings: Traction A, Temperature B, Tread wear 400. You also want new valve stems installed, the tires mounted and balanced, and the old tires properly disposed. // Tire Cost per month = Cost Per Set of 4 Tires/48 months // _ Pro-rate (per month) the cost for one battery. You live in a harsh climate and will probably need one new battery in the next four years. Check online or with a local battery distributor for the cost to replace the battery in your vehicle. // Battery Cost per month = Battery Cost/48 months // _ Pro-rate (per month) the cost for new windshield wiper blades. You will probably need to replace your wiper blades every year. Check online or with a local parts distributor for the cost to replace the wipers on your vehicle. // Wiper Cost per month = Cost for Set of Wiper Blades/12 months // _ Pro-rate (per month) the cost for two new headlamp bulbs in the next four years. Check online or with a local parts distributor for the cost for two new headlamp bulbs. // Headlamp Cost per month = Cost for Two Headlamps/48 months // _ Pro-rate (per month) the cost for one complete brake job in the next four years. Check online or with a local service facility for the cost to replace the brake pads/shoes and resurface the rotors/drums. // Brake Expense per month = Cost for Brake Job/48 months // _ Calculate your total monthly expenses by adding the following: _ Monthly Car Payment _ Monthly Insurance Cost _ Monthly Fuel Cost _ License and Registration Cost Pro-Rated Monthly _ Oil Change Cost Pro-Rate Monthly _ Tune-Up Cost Pro-Rated Monthly _ Tire Cost Pro-Rated Monthly _ Battery Cost Pro-Rated Monthly _ Wiper Cost Pro-Rated Monthly _ Headlamp Cost Pro-Rated Monthly _ Brake Job Cost Pro-Rated Monthly _ Miscellaneous Monthly Car Expenses _ Calculate the minimum number of hours you need to work each month to keep your car on the road. //Hours Needed to Work = Total Monthly Expenses/$7.00// Introduction Task Evaluation Conclustion
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 * Scenario 2 **
 * Procedure 2 **