The Process

Find a Job

Find a part-time job using on-line resources. Copy and paste a copy of the job you have selected into a Word document naming the internet or hard copy resource. Be sure the job you have selected indicates a wage per hour. Some potential resources (you are not limited to these) include: http://jobs.startribune.com/jobs/ and http://www.careerbuilder.com.

You may use other sites if you wish. Note: Most career sites will have features to help you narrow your search to part-time positions in the Mpls./St. Paul Metro area.

If you already have a part-time job. In Word, type of a job description and the hourly wage.

Determine Monthly Income

On the same spreadsheet,below this table, create a new table to show how many months it will take you to accumulate your downpayment of $2,000.00. (HINT: $2,000/net pay)

Locate Potential Vehicles to Purchase

Do Your Research

Now, either print your research for each vehicle or add the vehicle value information to the Word documents you already created. Be sure the asking price and the value you just located is labled clearly and completely along with the source for your research..

Narrow your Options

Calculate Monthly Payment and Insurance

For the two cars remaining, use two Excel spreadsheets to document the MONTHLY cost of financing and insuring the these vehicles. See sample spreadsheet below.

Assume you will pay the asking price, thus enter the seller's price as your price for the vehicles.

Sales tax in MN is 6.875%.

There is also a fee to transfer the title of the vehicle from one owner to another. Locate this cost on the following link (click on DVS home (top of page, then Fees, then Title Fee):

http://www.dps.state.mn.us/dvs/index.html

Remember the $2000.00 you saved? This is the downpayment for your vehicle so you do not have to borrow as much from the bank. So, the Total Financed on your spreadsheet is Total Cost (price + tax + title) - $2000.

Assume that you will obtain a three-year loan for what you need to finance or borrow. (36 months)

Use the following resources to find an average interest rate for your loan and then use an on-line loan calculator to determine a monthly payment. The following sites will provide all the necessary information: http://www.bankrate.com/, http://www.autobytel.com, or http://www.interest.com/

Use the following link to determine the registration (tab) fee. (Click on Division - Driver and Vehicle Services, Fees, Registration Tax)

You must first add the filing, technology and wheeling fees together. These are standard rates that everyone pays.

Then go to the section "Passenger Class Vehicle Registraiton Tax" and click on the "Base Value Guides for 2013" and retrieve the annual fee for your car based on the value and year.

Don't forget to add the filing,technology and wheeling fee to this amount.

This is an annual (yearly) amount, to find out how much this costs you each month, divide by 12.

http://www.dps.state.mn.us/dvs/index.html

Insurance quotes can be obtained on-line if you are over 18. For this project we will assume that insurance will cost $800.00 per year. Divide by 12 to get your monthly insurance cost.

To obtain your total monthly cost, add your monthly payment, monthly tabs and monthly insurance.

Make a Decision

Maintenance and Running Costs

Your monthly cost is not complete without adding the price of regular maintenance fees and fuel. In another Excel spreadsheet, calculate a total for these expenditures. See sample spreadsheet below.

Assume you will change the oil once every three months. Use a spreadsheet to calculate a monthly cost. We will assume and oil change will cost you $19.95 per service.

Assume you will need one tank of gasoline every other week (hint: 52 weeks in a year/2). Use a spreadsheet to calculate a monthly cost.

Assume you will save $50.00 per month for repairs, just in case.

Create Your Monthly Budget

Your final Excel spreadsheet will help determine if you can afford the car you have selected. Create the spreadsheet below to determine your discretionary income (income-less expenses). Don't forget to put at least $100/month toward investing or saving!

Conclusion

Can you afford this car? Is it a good purchase for you? In short report format explain your journey, what you learned in each step of the process, what surprised you, etc. Conclude with your final decision and appropriate reasoning.