Financial Literacy: Financing a Car -
This NO PREP LESSON
is a great way to teach students everything they need to know about purchasing a new or used car. It is loaded with hands-on lessons that teach students the ins and outs of selecting a vehicle, finding the best interest rates, and calculating car payments.
Updated on 2/28/17. Find your FREE UPDATE on your MY PURCHASES page.
This unit contains 4 lessons
Lesson 1 – Buying a New Car
In lesson 1, students will research a new car using the Internet. They will learn how to select car style, color, and options. They will learn how to find information on customer ratings and reviews, safety and reliability, mileage and warranty. They will review the vehicle summary and learn the difference between MSRP Price, Invoice Price, and True Market Value.
Lesson 2-Buying a Used Car
In Lesson 2, students will use the Internet to research a used car. They will learn what certified pre-owned means. They will learn how to find information on consumer ratings and reviews, safety and reliability, mileage and warranty. They will learn to research the car’s history including, accidents, recalls and service records.
Lesson 3 – Finding the Best Interest Rates
In lesson 3, students will use the Internet to research interest rates. They will learn how to find a loan from a local bank or credit union that offers the lowest interest rate with the least amount of fees and conditions for the car they selected.
Lesson 4 – Calculating Car Payments
In lesson 4, students use the Internet to learn how to calculate monthly car payments based on the price of the car they chose, and the best interest rates they found in lesson 3. They also learn how to gather additional information by reading the amortization table. By completing this lesson students will learn that the price of the car, the interest rate, and the number of years taken to pay off the car loan all come into play in determining their monthly car payment, as well as the amount of interest paid on the loan. They will quickly see that loans are not free.
*This unit is aligned with National Standards for Personal Finance.
*It offers options to make the lessons within it easier or more challenging.
*Discussion questions for each lesson are included in the teacher notes.
*Each lesson is packed with great questions, as well as sample answers.
*Detailed student directions and teacher notes are included.
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Lesson Plans (Bundled), Internet Activities, Simulations