The Process
To begin this Webquest, you must first determine the purchase price. To determine what vehicle you will choose, you must decide whether you are buying new or used vehicle. After you have made your decision you can use the different manufacturers of vehicles.
Step 1 – Determine Vehicle
Be sure you can answer the following questions when choosing a vehicle.
1. Year
2. Make
3. Model
4. Purchase Price
5. Annual Insurance Cost
6. Annual fuel Cost
7. Total Annual Cost ( Fuel cost + insurance cost)
Use the following websites for new cars:
Below are websites you could use for used cars:
Carmax
Cars.com
Step 2 – Determine Monthly Payment (Bank Loan)
This is where you will research and find your monthly car payment on the vehicles that you have chosen. You may use www.bankrate.com to assist in finding lenders and lending information for your new or uses vehicles. Make sure you record the following information on your student spreadsheet.
1. Name of Lending Company
2. Interest Rate (as a % and decimal)
3. Monthly Payment for a 60 month (__ year) loan.
4. Total cost of the loan (monthly payment x 60 months = total cost)
5. Amount of interest paid ( total loan cost – cost of car = interest)
Step 3 – Determine Vehicles Cost of Fuel
To determine your vehicle(s) annual cost of fuel, click Government’s Fuel Economy Website. Make sure to fill this data on your data spreadsheet.
Step 4 – Determine Vehicles Cost of Insrance
You can get a good quote for insurance on your vehicle(s) by visiting Isure.com. Make sure you record this data on your student data spreadsheet.
Step 5 – Create a Table to Analyze Your Vehicles Cost of Ownership
Use Excel and create a table to analyze your data. In column 1 label years 1-10. Then complete the table for all 10 years. If you are choosing more than one vehicle then make sure you create a column for both vehicles so that you can compare.
| Year(s) | Fuel Cost | Insurance Cost | Total Cost of Ownership |
| 1 | | | |
| 2 | | | |
| 3 | | | |
Step 6 – Create a Graph to Analyze Your Vehicles Cost of Ownership
Using Excel and the data you have entered, create a graph of your vehicles Cost of Ownership. Using the both the table and the graph, determine if this vehicle is financially wise for you to purchase.
Step 7 – Summary
Answer the following questions on your student spreadsheet.
1. Which vehicle would you purchase? Why? Explain this reason in at least one paragraph.