Vehicle FinanceEssential Math 12
Mr. Morin
Name:Slot:
Fuel Economy
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Maintaining a Car
Leasing a Vehicle
Buying a Vehicle
Driver Licensing and Vehicle Insurance
Fuel Economy
Examole 1 a) Paul goes on a road trip in his Nissan and drives 7842 km. On his trip he uses
602L of fuel. Calculate the fuel economy of the car on the road trip.
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b) If fuel costs $1.1 29/litre, calculate the total cost of The fuel used.
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Examole 2 Rick’s truck has a fuel economy of 13L/lOOkm in the city and 10.5L/1 00km on the
highway. Rick drives 685km in the city and 1354km in the country. Calculate the total
amount of fuel consumed.
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Questions1) A car takes 57L to fill the tank, The price of gas is $1 .099/L. Calculate the cost to fill thetank.
2) Mark drives a car 712km. To fill the tank it takes 64L.a) Calculate the fuel economy.
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b) If the price of gas is $1 ,459/L, calculate the cost of filling the tank.
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3) Jamie drives a total of 620km in the city and 160km on the highway. The fuel economy ofher Prius is 4.4L/lOOkm in the city, while the fuel economy is 5.1L/lOOkm on the highway.a) Calculate the number of litres that Jamie uses.
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b) If gas costs $1 .498/L, how much does she spenr-futr
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4) A car travels 67km on 9L of gasoline in the city. When the car is driven on the highway, it
can drive 92km on the same amount of fuel.
a) Calculate the fuel economy in the city,
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b) Calculate the fuel eConomy on the highway.
5) A truck travels 750km on 92.5L of gasoline in the city. When the truck is driven on the
highway, it can drive 254km on 20,4L of gasoline.
a) Calculate the fuel economy in the city.?2 S
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b) Calculate the fuel economy on the highway.
c) If the price of fuel costs $1 .645/L, how much does it cost to drive the distance
described in the question?,.
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6) Jon has a Hybrid Civic that has a fuel economy of 5.23L/1 00km, If Jon drives 4562km, how
much fuel does he use?
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7) Over the period of a month, Jill travelled 753km in the city and 1742km on the highway.Jill’s car has a fuel economy of 11 .5L/lOOkm in the city and 8.4LIlOOkm on the highway.a) Calculate the amount of fuel that was consumed.
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b) If the price of fuel was $2.159/L, calculate the amount spent on fuel.
8) Liz owed a car. After parting with the car she tabulated that she travelled 217,540km inthe city and 21,990km on the highway. Liz’s car had a fuel economy of 1 0.9L/1 00km inthe city and 9,2L/lOOkm on the highway. Calculate the amount of fuel that wasconsumed over the lifetime of the car.
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Assignment: Maintaining a Car
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Examole 1 Mae brings her vehicle into Neil and Waft’s for some repairs. Her car needs 4
new fires, $129.99 each; a new exhaust $219.13. The estimated labourforthese repairs will
take approximately 2.75h at a shop rate of $103/hr. Calculate the total cost of the repairs.
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ExamQle 2 Alexis drives a 1977 Dodge Dart. The vehicle needs new brakes, The cost of the
new brakes is $249 in parts and is expected to fake 1 .25h to complete. If the labour cost is
$84 an hour, calculate the total cost of the repairs.
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Questions
1) Why is it prudent to do some preventative maintenance on a car’?
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2) The cost of an oil change at Mr. Lube is $42.99 plus tax. Calculate the cost of 4 oilchanges including tax.
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3) Bob is servicing his truck in Fun Flon. The truck requires 4 tires at $230 each; 2 wipers at$1 1.99 each; exhaust pipe at $140. The time that is required to service the vehicle is 2,5h.If the shop rate Is $85/hour, calculate the total cost.
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4) Mark drives about 42,000km per year. How much should he budget for maintenance
over the year?
Maintenance Replacement Schedule Estimated Cost
Oil Change Every 3 months/ó000km $52
Rotate Tires Every 3 months/6000km $35
Air Filter Every 12 months $35
Replace Wipers Every 25,000 km $30
Replace front Brakes Every 80,000km $300
Replace Tires Every 100,000km $1100
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Write a sentence explain the rationale for the expense on tires and brakes.
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5) Rachel’s car is in for repairs. She is replacing two headlights at $49.99 each, 2 fan belts at
$19.99 each. The shop rate is $95/hour and the total amount of shop time needed was
0.5h. Calculate the total cost of the service,
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Leasing a Vehicle
Examole 1 After a four year lease, Barney wishes to purchase is BMW X5. After the lease theresidual value of the car is 62%. If the MSRP of the BMW X5 is $78,420, calculate the total costof purchasing the vehicle.
ExamDle 2 Rex is a happy man. He is leasing his first car: a Ford Fusion, The cost of the 48month lease is $250 per month, with a down payment of $1750 and a security deposit of$1000.
a) What is the total cost of the monthly payme ?I’
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c) What is the total cost of the lease?13
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Id) Why is the security deposit not ineiudêafri the tofdTiTfi’
Example 3 Still talking about Rex from the previous example... The MSRP on a Ford Fusion is
$27,300 and the residual value is 55%. Calculate the total cost of the lease and purchasing
the vehicle at the end of the lease.
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Question
1) Make a f-chart to list all expenses That you must pay taxes on compared to those you do
not: monthly payment, down payment, security deposit, maintenance, residual value,
etc.
GST and PST Taxable No Taxes
2) A lease vehicle is worth $54,000. The residual value rate of the lease is 65%. What is the
cost of purchasing the vehicle including taxes,
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4) April is leasing a Focus. It requires a down payment of $2000, with a security deposit of$750. The four year lease has a monthly payment of $349.99.a) Calculate the total amount due in the first month.
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b) Calculate the total cost of the lease over the four year period.
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5) Jamie leases a Ford Escape. It requires a down payment of $2300, and a security depositof $1250. The monthly payment of the Escape is $350. The new purchase price is $30,700a) Calculate the total cost of the lease over a 5-year period.
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b) If the residual value of the Escape is 55%, calculate the cost for purchasing the vehicle.
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3) A car has a residual valued of $20,750 (taxes not included) and the total payments of thelease were $16,753 (taxes included). What will be the total cost of purchasing this leasedvehicle?
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C) What is The total cost of The vehicle including the cost of the lease and purchasing the
vehicle?
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6) The monthly lease payment on a iwo-door car is $254.43 plus taxes for a term of 60
months. A down payment of $3100 is required. The sale price is $30,400 and the residual
value of the car is 57%.
a) Calculate the total cost of the lease.
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b) Calculate the total cost if the sedan is purchased outright at the end of the lease
include the cost of the lease, ,
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Buvina a Vehicle
ExamDle 1 Angus buys a 1993 Honda Civic for $5,500 from Rockin’ Ron’s Car Decership.Calculate the total cost of purchasing this vehicle.
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Example 2 April is going to buy a Beetle from a dealer. The base price is $28,857. She addsan upgrade package that costs $2,200, plus an automatic transmission for an additional$1,100. The freight on the car is $1,250. The traded in her used car and received a $5,000credit. What is the total price that she will pay?
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Questions
1) Make a t-chartto list the advantages buying a new car versus buying a used car.
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New Car
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Used Car
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1-JtExamDle 3 Willow is looking at buying a used Toyota hatchback from Bill MacdoneN. Theasking price of the car is $11,000. However the car needs some repairs. The repairs will cost$450 for parts and $150 in labour. Calculate the total cost of purchasing the car.
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2) Scoff is buying a used car. The price of the used car is $2,400.a) Calculate the cost of purchasing the used car if the car was purchased privately.
b) Calculate the cost of purchasing the used car if the car was purchased from a dealer,
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4) Calculate the total purchase price ofasking $5,500. A diagnostic test costsof the car.
a used mid-sized car sold privately. The seller is$45 and a lien search cost $15. Calculate the cost
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3) Michael wants to buy a used car that needs repair. The price of the car is $15,000. Therepairs will cost: $300 for engine work (labour): $800 for tires: $220 for other repairs (labour).Calculate the total cost of repairs and purchasing the vehicle (Qssuming a private sale).
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I5) Brian is buying a CR-V from a dealer. The cost of the CR-V is $27,500. Brian chooses a
technology upgrade package for an additional $2,350. The freight charge is $1,100.Calculate the total cost of the vehicle’?
6) April is going to buy a Beetle from a dealer. The base price is $28,857. She adds anupgrade package that costs $2,200, plus an automatic transmission for an additional$1,100. The freight on the car is $1,250. The traded in her used car and received a $5,000credit. What is the total price that she will pay?
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7) Barb buys a Nissan truck with a base price of $22,750 from a dealer.• Freight charges $750• Convenience upgrade package $1,200
a) Calculate the total charge for the vehicle.
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b) If Barb trades in her Lada and received a credit of $4000, calculate the net cost of thepurchase of the new vehicle,
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8) Chris purchases a new car. The price of the car was $35,840 (taxes included). The
monthly loan payment is $807.72/month over a 4-year period,
a) Calculate the cost of the car over the 4-year period.
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b) Calculate the total interest that is charged over this period.
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9) Max purchases a Civic. The price of the car was $21,999 plus tax. The monthly loan
payment is $537.35/month over a 5-year period.
a) If the car is paid for at the time of purchase, calculate the cost.
b) Calculate the cost of the car over if the money was borrowed over the 5-year period.
c) Calculate the total interest that is charged over this period.
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DeDreciation
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Examole 1 (Method 1) A new Ford Fusion has an MSRP of $34,000. The car is expected todepreciate 12% in its first year, 10% in the second year and 7% ever year thereafter,
ExamDle 1 (Method 2) A new Ford Fusion has an MSRP of $34,000. The car is expected todepreciate 12% in its first year, 10% in the second year and 7% ever year thereafter.
a) Calculate the value of The vehicle after 3 years.3
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b) Calculate the total depreciation of the vehicle after the 3 years.•
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after 3 years.
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a) Calculate the value of the vehicle
Ib) Calculate the total depreciation of the vehicle after the 3 years.
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Questions
1) List three factors that will depreciate a car quickly.
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2) A new car sold for $45,000. The car depreciated 15% the first year, 10% the second year,
and 10% in third year.a) Calculate the amount of total depreciation.
b) Calculate the value of the vehicle after three years.
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3) Determine the resale value of the following new vehiclesa) $27,000 Matrix at the end of four years (first year 20%, 15% a year thereafter
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b) $22000 Cobalt at the end of two years (f!rst year 13%, 11 % thereafter)
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c) $120,000 Mercedes ML55 at the end of five years (First year 11%, then 10% thereafter)
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4) Determine the depreciallon of one of the above vehicles. Use a different method fromquestion 3.
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Driver Licensing and Vehicle Insurance
hft://www.mpi.mbca
Click the tab - Registration and lnsurance- Overview
1) Visit the tab HOW YOUR RATES ARE DETERMINED
Auto insurance protects you in three categories, identify those three categories.* ( iO5
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2) Visit the tab PRINCIPALS OF AUTO INSURANCE
Identify the 5 factors that affect rates of insurance* 1C
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3)Under the tab VEHICLE USE you will find the definition of all-purpose and pleasure.Identify Iwo restrictions of a vehicle registered as pleasure. ‘
4) Under the tab MAJOR OFFENCE, identifyj major offences.
• Taxes on Cars PST (8%) GST (5%)New Car and Accessories
Used Car from Dealer -1Used Car Sold Privately
Parts - Repairs
Parts-Labour
lien Search No Taxes
Gasoline Taxes Included in the Price
,‘ L ‘ amountoffuelusedFuel Economy I I = x 100
\lOOkmI distance driven
Fuel Used = Fuel economy x distance driven (don’t forget to ÷ 100)
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