Re: Math project
Posted by Crono on Mon Nov 14th at 6:44pm 2005
Interest is the amount of "extra" money put onto a Loan. A loan (basically) consists of interest and principal. Principal is the price of the car, and when you get a loan, you get a (hopefully) fixed interest rate (2% or something like that ... credit cards are worse)
If you want like five billion quotes all at once, just go to progressive.com ...
Term of loan is the plan on how long the loan will take to pay off.
Three different loans you can get. You get them from banks, generally. (Or other financial offices designed for vehicles that are cleverly disguised banks)
I would suggest not choosing a civic ... unless you pay it off all at once, because, otherwise, they're a money pit. By the time you owe like $2K on the car ... you could buy an identical model for that amount. Chances are, that one would have rebuilt stuff too.
As for not having a job, do it for minimum wage or something. Make a note of that though.
Not that tough of an assignment, actually. You should be able to do it in about 20 to 30 minutes if you take your time.
If you want extra credit talk about how long the car may last. And all the other expenses it would gather. Say you're neglecting your driving, so that doesn't include tickets or accidents.
You know that most cars don't have problems until 60,000 miles. Use 120,000 as a cap. You're suppose to get an oil change every 3,000 (which isn't always necessary) So, that's (120,000 miles) 40 oil changes (and 40 air filters, which are about $10, check the list price for a Civic 2005) Oil changes ... just assume you're taking it somewhere, otherwise it'll be too cheap 
After 60K miles cars usually start having problems. You'll generally need the fuel injectors cleaned (unless it's a Ford, this starts happening around 40K 
) That's about $80 (look for prices though and quote them).
Add about ... $10 for two jugs of coolant. That's all you'll need, by the way. (I suppose you could factor in the price of water too, but it'd be negligible)
Now, you can also look up common problems with Civics, and estimate when and how much damage will occur to the car. Generally, them babies stay running ... even without oil (it's scary) ... calculate a repair price (over time) based on what you research and add that in.
Everything should be good as long as you clearly state what you're trying to find and things you're assuming.
I would imagine that'd give you a good amount of extra credit points
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Re: Math project
Posted by Crono on Mon Nov 14th at 7:03pm 2005
Oh! I forgot. Factor in DEQ prices. You have to get tested and new tags every two years. (It costs $80 for both here)
That's a big one. You'll have to calculate the life of the car first, so you can calculate all the stuff that requires time.
Oh yeah, about every 2 to 3 years you should replace your wiper blades (they're about $3 per blade ... how many does the civic have? 2 or 3? anyway, it's that about every couple years)
Also, add about $100 (check this) for at the 60K mark, since you generally need to start changing fluids then (brake, steering, etc) Generally, that isn't that bad, but if you take a 120,000 mile time line, that will need to be done sometime.
There's a bunch of other things you could include too. But I doubt this assignment is worth THAT much.
Oh yeah, you can neglect the "What if I fail DEQ" case. Just assume the car always passes.
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Re: Math project
Posted by parakeet on Mon Nov 14th at 7:42pm 2005
heh , i've gotten three quotes , but they seem radically different from each other , maybe its me but here they are
Geico $4158.55
Progressive Direct $1,017
North Carolina Farm Bureau Mutual Insurance Company $567
Now off to the loans...
Capital one gave me
Loan amount 17,660
loan term: 60 months
Apr: 5.65
Montly Payment:338.55
Total of Payments:$20,313.03
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Re: Math project
Posted by Crono on Mon Nov 14th at 8:25pm 2005
Those quotes, I bet, are from different payment plans. Are those per year? 6 months?
The north carolina one looks like 3-6 months
Gieco looks like 2 years
Progressive looks like 6 months or so
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Re: Math project
Posted by parakeet on Mon Nov 14th at 8:34pm 2005
hehe they were all for 6 months ;P
which is scary ...
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Re: Math project
Posted by fishy on Tue Nov 15th at 1:02am 2005
loans at 2%. is that a monthly interest rate?
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Re: Math project
Posted by Crono on Tue Nov 15th at 1:35am 2005
Should be annual.
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Re: Math project
Posted by wil5on on Tue Nov 15th at 2:43am 2005
I think its the law for them to always give annual interest rates.
If all those payments are every 6 months, I'm guessing theyre just minimum amounts you have to pay. Geico will get paid off sooner, Progressive will take longer etc. I'm just talking out of my ass here so I could be wrong.
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Re: Math project
Posted by Crono on Tue Nov 15th at 3:07am 2005
Most insurance, unless you specifically ask otherwise, will be for six months.
You don't have APR on insurance ... that's for the loan ... so that is annual.
Insurance companies ... as far as I know ... don't generally deal with loans. Banks do (a lot of banks own insurance companies though).
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Re: Math project
Posted by Tracer Bullet on Tue Nov 15th at 5:40am 2005
deleted for hasty stupidity.
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Re: Math project
Posted by wil5on on Tue Nov 15th at 6:32am 2005
Oh... thats insurance? Yeah, I was wrong.
Maybe the more expensive ones cover more, or something.
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Re: Math project
Posted by Crono on Tue Nov 15th at 7:12am 2005
No, it covers the same ![<img src=]()
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That's a lot of money. Might as well get a coverage thing from the DMV and front the money (I believe you have to give whatever you'd normally be insured for to the DMV so you don't need insurance). Not sure on the specifics, but I know there are alternatives to having insurance ... which are legal.
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. if you can
answer it , you may just look smarter or not hehe anyways here it goes