Cards, Cars and Currency, Lesson 4: The Car Deal Package

Emphasize that a car loan and making payments on the car loan are a package …… auto/autoloancalculator.aspx to complete the chart and help determine

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Cards, Cars and Currency, Lesson 4: The Car Deal Package
Lesson Description
Using examples of three types of cars as a reference an economy car, a moderately priced car and a luxury car students learn about the decisions involved in purchasing a car. The students work in groups to compare different car deals, using three criteria the income test, the down-payment option and the time option. The students analyze the terms of a sample car contract and consider the effects of signing the contract without understanding the terms. The students use an online calculator to collect information for informed decision-making.
Concepts
Collateral Contract Gross pay Interest Lien Net pay Opportunity cost Principal Secured loan Truth in Lending Act
Objectives
Students will:     
Define the terms listed in the Concepts section of the lesson. Analyze the price of consumer credit. Identify the factors that affect the total price for a car including the interest rate, the length of a contract and the size of a down payment. Evaluate the costs and benefits of car purchase options. Identify an advantage and a disadvantage of secured loans. Analyze a car contract.

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