1. Buying a New Car

2. Terms to Know
Down Payment - Cash paid up-front by a borrower to reduce the amount financed in a lease or loan. A larger down payment can reduce your monthly payments.
12,500   Vehicle Price - 1,500   Down Payment ,000    Total Loan Amount

3. Terms to Know
Sales Tax – A percentage of the cost of an item (in this case, the car) that is added to the total cost.
Sales tax varies by state. The sales tax in Kentucky is 6%.

4. Terms to Know Loan Term – the length of a loan
The loan term can be between months (2-7 years)
The average loan term length for a new car is 65 months. 

5. Terms to Know
Monthly Payment - the amount a borrower is required to pay each month until a debt is paid off

6. Terms to Know
Total Cost of Buying a Car – The total cost of buying a car is the vehicle price, plus the additional sales taxes and applied interest

7. CAr Buying activity
Use the Car Buying Spreadsheet to research cars at four different price points 
Under $10,000
$10,001 - $40,000
$40,001 - $75,000
$75,001 - $500,000

8. CAr Buying activity
Use this site to calculate the total cost of the four different cars at the four different interest rates. 
For this activity, we will put down 20% of the Vehicle Price as a Down Payment. 
We will assume our Loan Term is 48 months (4 years)