Owning & Operating a Vehicle Assignment

Owning & Operating a Vehicle Part 1 - Comparing Vehicles  Choose 2 new vehicles (priced around $25 000) that you would like to compare, with the intent of buying the best one  Fill out the chart below with information found on the car/dealer website Vehicle #1

Year, make & model

Price

Appearance (colour, 2dr/4dr, etc.)

Features/Options (eg. power windows, A/C, sunroof, etc)

Fuel Consumption - City (L/100km)

Fuel Consumption Highway (L/100km) Size of gas tank-gas tank capacity

Service/Maintenance Schedule (eg. how often does it need an oil change) * you may need to go onto a dealership website for this (eg. For GM vehicles it is generally every 5000km or 3mths)

Vehicle #2

Insurance (per year) *give the highest & lowest quotes and the company each quote was from **See "Getting an Insurance Quote Online" (on the back of this page)

Getting an Insurance Quote Online *This process is a bit finicky – follow the instructions below EXACTLY!    

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go to the website www.kanetix.ca choose car insurance from the drop down menu enter your postal code & click "GO" fill out driver information, licensing information, driving history & insurance information as accurately as possible o Choose a birthday that makes you 17! o When it asks what type of license you hold, say you have your G2! (You will have to do the math to figure out when you will have received your G1…) Choose today’s date to begin your new policy

Vehicle Information  Complete the vehicle details section with information about each of the cars you are comparing (so you will go through this process twice)  purchase date: Today’s date  Annual mileage: 20 000 km  Distance to work/school (use mapquest if you don't know the distance from your house to school)  Business mileage: leave blank  Alarm systems: no  Snow tires: your choice (if yes, look up the price of snow tires & the cost to have them installed – you will have to add this to your final price in part 2) Discounts  no multiline discount  not insured/less than 1 year  monitoring device: look up what this is and decide whether you are willing to have it installed – include the costs in part 2  no employer group  member of roadside assistance: no Optional Services  do not check any boxes  do not give your email Click "Get Quotes"

Part 2 - Choosing a Vehicle  Use the comparison chart in part 1 to help you choose the car that is best suited for you at this point in your life (as a student) - consider price, fuel efficiency and any specific features you need/want  Describe your vehicle in detail (include a picture) – be sure to include all the options in the package you have chosen (eg. Automatic locks, satellite radio, whatever extras you have)  List any special features or add-ons you want to include and the cost associated with them (eg. Snow tires, alarm system, etc.)  Make sure the final price includes any additional costs associated with options or upgrades

Part 3 - The Cost of Owning & Maintaining a Vehicle  Use the websites provided at the end of each question to look up the information required. If you cannot find an answer, search other sites to find out what you need to know  Write or type the answers in the space provided. 1) Insurance (already calculated on p. 1) 

highest quote:

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lowest quote:

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average quote:

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monthly payment amount for lowest quote:

2) Vehicle Licensing (www.mto.gov.on.ca) 

What are the requirements for vehicle licensing?

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What is the cost for licensing a vehicle and buying number plates?

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What are the yearly validation fees (for a passenger vehicle)?

3) Maintenance 

Look up the cost of an "oil, lube & filter" at 3 different locations (eg. dealership, Canadian Tire, etc.)

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What is the mean (average) cost of an oil change?

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Based on the maintenance schedule from the chart in part 1, how many times will you need to have the oil changed in one year (if you drive about 20 000km)?

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What will your normal maintenance costs be for one year (if you drive about 20 000km)?

4) Gas Costs (www.ontariogasprices.com)  

Search for LOCAL GAS prices for the Hamilton area – price per Litre What is the range of the prices (lowest – highest)?

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Where is gas most expensive? Where is it cheapest?

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What is the mean (average) price of gas in Hamilton, based on the prices given on the website?

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Using the average gas price you calculated above, how much will it cost to FILL up your gas tank? (Look at the chart in part 1 for the gas tank size.)

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How far could you drive on one tank of gas in the city (use the CITY MILEAGE from the chart in part 1)?---Solve using Proportions

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How far could you drive on one tank of gas on the highway (use the HIGHWAY MILEAGE from the chart in part 1)?—Solve using Proportions

CALCULATING YEARLY GAS COST 

Assume you will drive about 20 000km per year. 

How much gas will you use in a year (use the average mileage to calculate this)?

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What will be the cost of your gas for a year (use the average gas price already calculated)?

Part 4: Paying for your Vehicle 1) Calculating your Financing You have 3 loan options available to help you pay for your new car. Calculate the total amount owing for each loan. Loan #1 -Make a $5000 down payment -Finance the rest of the cost at 6.5% simple interest for 4 years

Loan #2 -Make an $8000 down payment -Finance the rest of the cost at 5.3% interest, compounded semi-annually for 3 years

Loan #3 -no down payment -Finance the entire cost at 7% interest, compounded monthly for 5 years

Monthly Payments

Monthly Payments

Monthly Payments

Pros & Cons of Loan #1

Pros & Cons of Loan #2

Pros & Cons of Loan #3

Calculations:

2) Annual Costs Complete the chart below with the yearly costs associated with owning your vehicle. Item Insurance

Gas (based on 20 000 km/year)

Maintenance (based on 20 000 km/year)

Yearly Validation Fees

Loan Payments (monthly payments x 12)

Cost