Car Math Project

Name: ___________________________

Start Date: ____________

Objective; By the end of this project you should have a real-world knowledge of what is
required to buy a car in the state of Vermont. This project will focus on the following concepts:

Rate
Percentages
Sales Tax
Proportions
Money Math
Budgeting

Directions: Record the requested information below about each vehicle. Please show all work.
At the end of this project, you will display all work to include pictures of each chosen car,
portfolio of work, and application of above math skills. Good Luck!

1.

Pick two vehicles that you would like to own in the future. One vehicle will be a sensible
vehicle that is moderately priced. The other can be your dream car. Fill in the spaced
below.
Vehicle #1: Dodge Charger

Vehicle#2: Honda Civic

Make/Model:

SXT

Make/Model:

LX Sedan

Year:

2013

Year:

2013

Price A

18,993$

Price:

14,400$

MPG (miles
per gallon)

25 MPG

MPG (miles
per gallon)

30 MPG

2. When you buy a car you must pay a sales tax of 6% and a title fee of $35.00 (cost info
website DMV).
Vehicle #1: Dodge Charger

Vehicle#2: Honda Civic

Tax (B)

1,139.58

Tax (B)

864

Title (C)

35$

Title (C)

35$

Total Cost D
(Add A,B,C):

20,167.55$

Total Cost D
(Add A,B,C):

15,299$

3. You will be financing these vehicles using Vermont Credit Union of Cool. Randomly
select a down payment percentage, an APR, and the length of your loan. Use Auto
Loan Calculator on bankrate.com, and line G, H, J to calculate the monthly car payment.
Vehicle #1: Dodge Charger

Vehicle #2: Honda Civic

Down Payment %

(E) 20%

Down Payment %

(E) 20%

Down payment $
(D of E)

(F) 4,033.52$

Down payment $
(D of E)

(F) 3,059.08$

Total amount to be
financed (D thru F)

(G) 16,134.06$

Total amount to be
financed (D thru F)

(G) 12,239.92$

APR

(H) 5%

APR

(H) 5%

Length of Loan

(J) 3 yrs - 36
months

Length of Loan

(J) 3 yrs - 36
months

Monthly Car
Payment

470.77$

Monthly Car
Payment

357.00$

4. You will also need to budget your monthly/yearly expenses for the vehicles.
Insurance: You will need full coverage insurance since you are financing a vehicle
from a financial institution. Visit Free Car Insurance Quotes to determine the annual
cost of car insurance for each vehicle. (Note: Quote is for 6 months)
Vehicle #1: Dodge Charger

Vehicle #2 Honda Civic

Annual Cost

Annual Cost

144 per month

1,728

104 per month

1,248

Gas:
a. Use Google maps to estimate (be creative) how much you may drive in a given
week. Consider travel to and from work (home to Middlebury College for instance), to
and from school, casual travel (going to movies).
b. Convert the weekly estimate into a monthly figure.
c. Given the current price of gas ($2.20), and the estimated MPG per vehicle (check
question #1), budget your cost of gas per month (30 day average).
Weekly mileage

(K)
146 Miles Per
Week

Monthly mileage
(K*52)/12

(L)
633 Miles Per
Month

Vehicle #1

Vehicle #2

MPG

(M) 25

MPG

30

Monthly Cost
(L/M)*$2.20

(N)
56$

Monthly Cost

46.42$

Up Keep: You will be having the usual scheduled maintenance performed for each
vehicle.
a. Most vehicles need to get oil changes every 3,000 miles or 3 months, whichever
comes first.
b. Tires should be rotated every 6,000 miles. Based on the mileage you estimated,
calculate the annual expenses for oil changes & tire rotations. Consider that more
expensive vehicles may require premium products.
Vehicle #1

Vehicle #2

# of oil changes needed

# of oil changes needed

Cost per oil change

40$

Cost per oil change

20$

Annual oil change expense

160$

Annual oil change expense

80$

# of rotations needed

# of rotations needed

Cost per rotation

34$

Cost per rotation

26$

Annual rotation expense

34$

Annual rotation expense

26$

Unexpected Repairs: Sometimes your vehicle will need unexpected maintenance (flat
tire,dead battery, etc.). Based on the expense of your vehicles parts (more expensive
vehicles may require premium products), estimate an annual allocation for unexpected
repairs.
Vehicle #1

406$

Vehicle #2

317$

State fees: The state requires you to pay annual fees on your vehicle.
a. State inspection costs $35.00 annually.
b. Vehicle registration costs $76.00 annually.
State inspection

111$

State inspection

111$

Vehicle registration

Vehicle registration

5. Now that you have considered all the potential expenses of owning a car, estimate the
monthly cost of having a car. Some of the expenses that you calculated above were annual
costs, while others were monthly. If expenses were recorded annually, determine what the
cost of that expense would be if it were spread out over 12 months. Record only monthly
costs below to determine the total monthly cost of owning your vehicles.

Vehicle #1: Dodge Charger

Vehicle #2: Honda Civic

Car Payment: 470.77$

Car Payment: 357$

Insurance: 144$

Insurance: 104$

Gas: 56$

Gas: 46.42$

Upkeep: 16.16$

Upkeep: 8.83$

Unexpected repairs: 33.83$

Unexpected repairs: 26.41$

State fees: 9.25$

State fees: 9.25$

Total Monthly Cost: 730.1$

Total Monthly Cost: 551.91$

6. After analyzing the total monthly cost of owning each vehicle and taking into account your
salary, living expenses, and desired lifestyle, thoughtfully explain which car you will choose
to buy and why. You must use a minimum of 4 complete sentences to respond.

I would rather have the Honda Civic because it costs less money in every category up top. If I
had to repair my car it would be expensive but not nearly as damaging to my wallet as a dodge
charger would be. 730$ is a lot of extra money to be keeping around simply for a car, I could get
an entire years worth of groceries with that 730$! I would honestly wont be looking to get a
dodge charger unless I magically start making 730$ a month, so thats why Id pick the Honda
Civic.