16.1 - FINANCING CAR PURCHASE 1) BUYING A CAR HOW PRICES...

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Unformatted text preview: FINANCING CAR PURCHASE 1) BUYING A CAR HOW PRICES ARE CALCULATED BUYING A CAR TOTAL VEHICLE PRICE TOTAL SALES PRICE 25,961.00 $ FREIGHT 1,000.00 $ ADMINISTRATION FEE 99.00 $ 27,060.00 $ RUST INHIBITOR 739.13 $ EXTENDED WARRANTY 1,384.00 $ TOTAL VEHICLE PRICE 29,183.13 $ BUYING A CAR AMOUNT FINANCED TOTAL VEHICLE PRICE $29,183.13 PST @ 8% 2,334.65 $ GST @ 7% 2,042.82 $ LICENSE FEE 81.65 $ TOTAL PURCHASE PRICE 33,642.25 $ DOWNPAYMENT 500.00 $ AMOUNT FINANCED 33,142.25 $ 2) FINANCING ALTERNATIVES BORROWER (LOAN) VS LEASE CAR FINANCING DEALER FINANCING INCENTIVES FROM MANUFACTURERS CAN BE LOAN OR LEASE CURRENTLY 0% TO 8% COMMERCIAL BANK FINANCING CURRENTLY (OCT/05) 7.15% PA NEW VEHICLE 10.25% PA USED VEHICLE PAY CASH OPPORTUNITY COST 1. DEALER FINANCING LOAN AMOUNT 33,194.25 $ (INCLUDES $52 LIEN REGISTRATION FEE) INTEREST RATE 2.90% (INTEREST DIVIDE BY 12) TERM 5 YEARS (YEARS MULTIPLE BY 12) PMT $594.98 PER MONTH PRINCIPAL PERIOD DATE O/B PMT INT PAYMENT C/B 1 28-Oct-05 33,194.25 $ 594.98 $ 80.22 $ $514.76 32,679.49 $ 2 27-Nov-05 32,679.49 $ 594.98 $ 78.98 $ $516.01 32,163.48 $ 3 27-Dec-05...
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This note was uploaded on 11/13/2011 for the course CIVE 2*** taught by Professor - during the Spring '11 term at Carleton CA.

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16.1 - FINANCING CAR PURCHASE 1) BUYING A CAR HOW PRICES...

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