Part I: The Costs of Your Vehicle

1. General Specifications of Your Vehicle

Make/Model/Year : 2001____________ Toyota Prius__________________

New or Used : __________used____________________________

Buy or Lease : __________leased ____________________________

mileage (km): _171,960______81000_______ colour (interior/exterior):

_____Blue/black___red____________

engine size : _________4 cylinder_______ automatic or manual locks/windows:

_________automatic_____

transmission: manual or standard/ automatic # of doors: _4__________________

warranty costs (if applicable): ______________ additional costs: (freight/PDI etc) __________________

fuel efficiency : in the city ___1.5L hybrid_________________ on the highway

________________________

other specifications : ____security system , AM/ FM stereo alloy wheels anti theft anti starter Cd
player dual airbag keyless entry power brakes power brakes power mirrors power steering
power windows rear defroster tilt steering power locks cruise control power
trunk________________________________________________________________________

_________________________________________________________________________________________________

2. Specific Costs for Your Vehicle

MRSP/base price : _____5, 995___________

Cost of options : ___N/A_____________ (include warranty/air/alarm systems/new rims/tinting

etc.)

Freight & PDI: $1000 (*new car ONLY)

Other costs : $200 (gas tax, air conditioning tax, Tire Stewardship fee)

License Fee : $120 (for new license plates)

Vehicle Registration: $75 (per year)

Subtotal : __5, 995______________

HST (13%) __779.35______________

Total Sale Price ___6774.35_____________

For your character, what down payment (if any) has been saved so far ? __no money has been
saved__________________

Option A: Buying a vehicle

a) If your character has a down payment available, there will remain a balance to be paid.
What is the remaining amount (principal amount) which must be financed through either a
car loan or a personal loan? _________________6, 774.35
_________________________________________________________

b) If your car dealership offers you financing for the balance of the money at an interest rate
of 6.54% compounded monthly, paid over a term of 60 months (5 years) how much will
you end up paying to the bank at the end of the term ? ( Show your work ! )

A= P(1+i)n

A= 6, 774.35(1+0.0654)^5

A= 6,774.35(1.3726)

A= $9, 298.47

c) What will your monthly payments work out to be? It would work out to be $154.97 a
month

d) The car dealership decides your credit is risky, and charges you an additional 10% fee for
credit insurance. This fee is added to the principal amount. What is your new principal?
What is your new monthly payment?

The new principle is $7451.78

 e) At the end of the 5 year term, how much will you have paid in interest ? (Hint: use I = Pr t )

Option B: Leasing a vehicle --- TO BE UPDATED

SHORTLY

3. Car Insurance

Visit the website www.ibc.ca (Insurance Bureau of Canada), and select “Car Insurance” from the
side menu. Click on “Introduction to Car Insurance” and use the information within to answer the
following questions in full sentences.

a) How would you describe insurance in your own words?___________________________________

________________________________________________________________________________________

________________________________________________________________________________________

________________________________________________________________________________________

b) Summarize how car insurance works.____________________________________________________

________________________________________________________________________________________

________________________________________________________________________________________

________________________________________________________________________________________
You have used the website, www.kanetix.ca to obtain an insurance quote based on your
character and car profile.

a) Based on the information required for the quote, what are some of the major factors that
companies look at when giving an insurance quote? ____________________________________

________________________________________________________________________________________

________________________________________________________________________________________

________________________________________________________________________________________

b) What was your best quoted price ? (per year) And from which company ?_________________

_________________________________________________________________________________________

_________________________________________________________________________________________

c) Redo your insurance quote for the same car, but for an 18 year old male and an 18 year
old female. (In each case, they would have received their G1 license at 16 and G2 at 17.)
What are the newly quote rates: 18 yr old male ____________ 18 year old
female______________

d) How do the newly quoted rates compare to your original quoted rate ? And how do they
compare to each other ?________________________________________________________________

_________________________________________________________________________________________

_________________________________________________________________________________________

_________________________________________________________________________________________

4. The Cost Of Operating A Motor Vehicle

1. Lisa purchases a new car. She estimates that she will drive 28 000 km in the first year.

Use the vehicle maintenance schedule to estimate Lisa's maintenance costs in the first
year.

Frequen # of Cost Maintenanc

Vehicle Maintenance cy e Cost
Time
(km) s

Lube, Oil and Filter 5 000 $29.95

 Tire Rot./Brake 10 000 $41.50
Inspection
Wheel Alignment 25 000 $69.75
Cooling System 50 000 $72.95
Tune-Up/Emission 50 000 $225.00
Control
Automatic Transmission 85 000 $145.00
Subtotal
PST
GST
TOTAL

2. Justin's truck has a fuel consumption rating of 8.5 L/100 km. In the first 4 years he owns
the truck, Justin drives a total of 183 200 km. He follows the maintenance schedule from
the previous example. Justin pays $1 230.00 insurance each year. He renewed his
driver's licence, once, at a cost of $50.00. His vehicle licence plate is renewed each year
at a cost of $74.00 per year. Justin paid $35 000 for his truck and the rate of depreciation
is as listed in the chart below. If the average cost of fuel is $0.77/L, determine Justin's
average monthly operating cost over the 4 years.

Frequency # of Cost Maintenanc

Vehicle e Cost
Fuel Costs (km) Time
Maintenance
s

km Travelled Lube, Oil and Filter 5000 $29.95

Fuel Tire Rot./Brake 10 000 $41.50
Consumption
# of Litres of Inspection
Wheel Alignment 25 000 $69.75
Cost Gas
per Litre Cooling System 50 000 $72.95
TOTAL Tune-Up/Emission 50 000 $225.00
Control
Automatic 85 000 $145.00
Transmission Subtota
lPST
Insurance /Year License Plate GST
# of Years Fee
# of Years TOTAL
Subtotal Total
Tax (5%) License
Insurance Renewal
License
TOTAL TOTAL
TOTAL COST
Average Monthly Cost