MAT 1010 Car Buying vs. Leasing Homework

Homework is Due Monday at the BEGINING of Lab

1. Find a group of 2-4 people to work with. I am expecting that you will work on this homework outside of class. (If you decide on a car quickly, this should take around 15 minutes) As a group, decide on the following together (you may each wish to do this, and then meet briefly/ or e-mail to decide which car you want to go with):

2. Go to the Edmunds page at Be patient, as it may take awhile. Follow the links on their page to find a new or used car your group wishes to buy. For example, you might click on New Cars (on the left), then on Subaru, then on (2000 Pricing Also Available), then on, 2000 Subaru Impreza 2.5 RS AWD Sedan, then on Vehicle Prices (MSRP, Dealer Invoice, & TMVSM), then copy and paste this info into Microsoft Word, then hit the Back key on your web browser, then click on Optional Equipment (Descriptions & Prices) and scroll down past the color choices to list the nonstandard options you wish to purchase along with their price. Copy and paste this info into Microsoft Word. If you don't find a car you like on Edmunds, you may search the web for other cars (if you can find the needed info). Be sure that your print out includes the MSRP and dealer invoice, the destination charge (which you must pay for), and the price of any options that you want. Each group should do one car, and decide on the info. One set of printouts per group due.

  • Print out Microsoft Word sheet with the vehicle name, prices and optional equipment prices that your group wants.

  • Assume that you have negotiated with the dealer and will pay $500 over the invoice price. You must also pay the destination charge, and any special taxes. Circle any options that you want and add everything up. What is the price of your car with all options you want, the $500 over invoice, the destination charge and any other special fees?

  • In North Carolina, you must pay a 3% sales tax. Add this to the price of your car to get your car's total price. How much is this?

    3. Assume that you will put 10% down on your car. Then you will need a loan for 90% of the car's total price (in bold above).

  • What is 90% of the car's total price (which you will need to take out as a loan)?

  • Is your car a new vehicle or used vehicle? Circle the appropriate block of text. (I obtained the following from the State Employees Credit Union at
    Up to 60 months 8.00%
    61 to 72 Months 8.25%
    All 2000 and 2001 models must have less than 10,000 miles.

    1996 - 2001 Up to 60 Months 8.25%
    5 years or older Up to 48 months 8.25%