Today we'll be talking about how to choose a car. We'll be doing p13 in your finances booklet after we have a look at the slideshow together.
Start with checking out this CBC news story:
http://www.cbc.ca/news/canada/british-columbia/couple-feel-robbed-by-25-interest-td-car-loan-1.2483342
What happened to that couple? Why is it important?
A few things to note:
Start with checking out this CBC news story:
http://www.cbc.ca/news/canada/british-columbia/couple-feel-robbed-by-25-interest-td-car-loan-1.2483342
What happened to that couple? Why is it important?
A few things to note:
- Car loans are being offered in longer and longer pay-back times (amortization periods). This may lead to people thinking that they are getting a great deal with a lower payment amount per month. However, over the long term you're paying a lot more in interest.
- Cars depreciate rapidly in value. If you're in a longer-term loan, you might find yourself at a point in which the loan you have is worth more than the value of the car (eep!).
Here is a link to a car loan calculator: https://www.cibc.com/ca/loans/calculators/car-loan-calculator.html
Here's a simplified loan calculator that will let you put in a smaller amount for a price:
https://www.tdcanadatrust.com/loanpaymentcalc.form
When you're calculating a car loan, the interest rate will depend on the length of the loan, as well as your personal finances. For this game, you can set your interest rate at 7.5%. You may be able to get a loan that's much lower than this rate, but some are higher as well. We'll go with this at a 4 or 5 year term (your preference).
If you're going to buy a used car, you can check out the ads:
http://www.kijiji.ca/b-cars-vehicles/whitehorse/c27l1700102
If you're going to be buying a used car, your financing options would be to pay for it outright, or to get a loan from a financial institution. If you're buying from a dealer, you could get dealer financing as an option too. Be sure to compare your options.
Here's a simplified loan calculator that will let you put in a smaller amount for a price:
https://www.tdcanadatrust.com/loanpaymentcalc.form
When you're calculating a car loan, the interest rate will depend on the length of the loan, as well as your personal finances. For this game, you can set your interest rate at 7.5%. You may be able to get a loan that's much lower than this rate, but some are higher as well. We'll go with this at a 4 or 5 year term (your preference).
If you're going to buy a used car, you can check out the ads:
http://www.kijiji.ca/b-cars-vehicles/whitehorse/c27l1700102
If you're going to be buying a used car, your financing options would be to pay for it outright, or to get a loan from a financial institution. If you're buying from a dealer, you could get dealer financing as an option too. Be sure to compare your options.
Here are the slides that we'll use for this section
getting_a_car_slideshow.pptx |