My Wheels Gary Benson’s Commute 1 - Lancaster High School...My Wheels Gary Benson’s Commute 2 Name: ___ Class: _ Period: __ To get from his apartment in DeKalb, Illinois

My Wheels Gary Benson’s Commute 1

Name: ____________________________________ Class: _______________________ Period: ____

Gary Benson just graduated from Northern IllinoisUniversity with a degree in computer graphic design andhas gotten a job with GameTech, Inc., a computer gamedevelopment company in the Chicago suburbs.

He’s decided to stay in DeKalb, Illinois where he went toschool and commute to work about an hour each way. Heknows the “beater” he’s been driving for the past fouryears is on its last legs and won’t last anytime for dailycommutes so he needs to buy a different vehicle.

What things do you think Gary should take intoconsideration when deciding what vehicle to buy?

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To get from his apartment in DeKalb, Illinois to work in the suburbs each day is a 45 mile drivewith some heavy traffic. Gary knows it will take about an hour each way. He’s been looking for adifferent vehicle on the internet and has found six he is interested in that he can see at dealer lotsin the area. Explain what you think is good and bad about each of his choices.

A thirty-four year old classic VW Beetle Convertible for $9,795 (mileage unknown)

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A four year old jeep with 48,689 miles for $16,795

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A new motorcycle for $9,995

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A new gas/electric hybrid for $24,495

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A two year old pickup with 21,453 miles for $14,495

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A three year old SUV with 57,839 miles for $13,895

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Gary is trying to estimate his monthly costs to own each of the six vehicles. Complete thefollowing table to help him make a decision. Consider only the information given.Round dollar answers to the nearest cent and gallon answers to the nearest gallon.

A = Price

B = Sales Tax (A x 6.25%)

C = License & Title

D = Total Cost (A+B+C)

E = Trade-In Allowance

F = Amount Financed (D-E)

G = Number of Monthly Payments

H = Monthly Payment

I = Total Credit Cost [ (H x G) + E ]

J = Annual Insurance Premium

K = Monthly Insurance Cost (J / 12)

L = Price of a Gallon of Gasoline

M = Average Miles Driven Per Month

N = Gas Mileage

O = Monthly Gasoline Cost [ (M / N) x L ]

P = Total Monthly Vehicle Cost (H + K + O)

A . . . . $ 9,995.00 $16,795.00 $ 9,795.00 $24,495.00 $14,495.00 $13,895.00

B . . . . ___________ ___________ ___________ ___________ ___________ ___________

C . . . . 103.00 143.00 143.00 143.00 143.00 143.00

D . . . . ___________ ___________ ___________ __________ ___________ ___________

E . . . . 700.00 1,000.00 900.00 1,500.00 900.00 800.00

F . . . . ___________ ___________ ___________ ___________ ___________ ___________

G . . . . 36 48 36 60 48 48

H . . . . 309.56 524.92 302.61 761.14 452.36 435.37

I . . . . . ___________ ___________ ___________ ___________ ___________ ___________

J . . . . 1,592.00 2,360.00 2,960.00 2,706.00 3,050.00 2,625.00

K . . . . ___________ ___________ ___________ ___________ ___________ ___________

L . . . . 3.00 3.00 3.00 3.00 3.00 3.00

M . . . . 2,180 2,180 2,180 2,180 2,180 2,180

N . . . . 70 19 30 48 17 20

O . . . . ___________ ___________ ___________ ___________ ___________ ___________

P . . . . ___________ ___________ ___________ ___________ ___________ ___________



Rank the six vehicles Gary is considering from best choice (1) to worst choice (6) andexplain your ranking.

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Do you think there is a better alternative for Gary? Explain

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My Wheels What Should She Do? 6


Sharon is a sophomore at Western Community College where she is studying to bea paralegal. She is still living with her parents and plans to live with them at leastone more year before moving out. She has been sharing the two family cars, but isready to buy a car of her own.

Read each scenario and write questions you think she should ask herself.

Scenario 1: Sharon has decided to save for a “beater” that she can get for a couple of thousand dollars.She plans on putting $175 a month from her part-time job in a savings account. In a year she’ll have$2,100. Then she can pay cash for a cheap used car.

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Scenario 2: Sharon has decided to ask her parents to co-sign a three year, $9,000 loan on a good used car that sheplans to drive until she is working full-time and can buy a new one.

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Scenario 3: Sharon has decided to buy an inexpensive new car. She plans on getting a five year loan from her bankor financing from the dealer, whichever will charge the lowest interest rate and give her the best repayment terms.She is going to ask her parents to co-sign the loan.

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When you’re deciding how much you can afford to spend on a vehicle, there are a lot of questions you should askyourself:

• How much income do you have?

• Can you count on your income being steady?

• What other living expenses do you have to budget for?

• How much will it cost to own the vehicle?Monthly paymentsInsuranceMaintenance and repairsGasolineParkingLicense and other vehicle taxes

• Is a vehicle transportation to you or a status symbol?

• Do you need a certain type of vehicle?An economy car for commutingA pickup for work or haulingA van or SUV for a big family

• Are you willing to be in debt and are you able to get a loan?

• Do you want to buy or lease?

• How much disposable income do you want each month for having fun or buying things you just want?

My Wheels What Should She Do? 7


Sharon has been looking at used vehicles on the dealer lots around town and has found several she isinterested in. To help her determine the quality of the vehicles, she’s made copies of a used vehicleevaluation form she found in a magazine.

You complete the evaluation form by listing 25 things you think Sharon should checkout on the vehicles before she decides to buy.

Used Vehicle Evaluation FormMake: _____________________ Model: _____________________ Year: ________________

Dealer Price: $_____________ Book Price: $_______________ Condition: _____________

Items to Check: Poor Ave Good Excl

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My Wheels Leasing vs. Buying 8


After looking at used cars, Sharon has decided to buy a new subcompact car andher parents have agreed to co-sign the loan contract.

Use the line by line instructions on the following page to complete theworksheet below and calculate Sharon’s costs to finance the car.

Purchase Worksheet

1. Price .............................................. 14,799.002. Documentation Fee ...................... 40.003. LAH Premium .............................. 0.004. Sales Tax (5.75%) ......................... _______5. License and Title.......................... 165.00 ________ (Total Cost)

6. Trade-In ........................................ 0.007. Down Payment ............................. 0.008. Rebate ........................................... 500.00 -________ (Total Down)

________ (Amount Financed)

9. Amount Financed ......................... _____ _

10. Term of the Loan .......................... 48 Months

11. Monthly Payments of ................... 367.61

12. Total of Payments......................... ______

13. Total Credit Cost .......................... ______

14. True Annual Interest Rate ......... 7.0%

15. Finance Charge ............................ ______

What are the advantages of buying a new car rather than a used car?

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My Wheels Purchase Worksheet Instructions 9


Line 1 is the price the dealer is willing to sell the car for which is $500 less than themanufacturer’s suggested retail price (MSRP) of $15,299.

Line 2 is a fee that the dealership charges the customer for paperwork on the vehicle.

Line 3 is the premium for life, accident and health insurance if Sharon wants it. Thisinsurance will cover her payments if she is unable to make them because of her death orthe inability to work because of sickness or accident. She has declined this insurance.

Line 4 is the sales tax where the purchase took place. It is calculated in the followingway: (Selling Price + Doc Fee) x .0575

Line 5 is the cost of license and title for the car.Line 5 also lists the Total Cost of the car which is the sum of lines 1-5.

Line 6 is the value of the trade-in (Sharon has none).

Line 7 is for any additional down payment that is made (Sharon is making none).

Line 8 is a manufacturers rebate that was given on the car.Line 8 also lists the Total Down which is the sum of lines 6-8.

Line 9 is the Amount Financed (Total Cost - Total Down).

Line 10 is the term of the loan which in this case is 48 months (4 years).

Line 11 is the Monthly Payment.*

Line 12 is the Total of Payments. This is calculated by multiplying the monthly payment (line11) by the number of payments (line 10).

Line 13 is the Total Credit Cost. This is calculated by adding the Total Down to the Total ofPayments.

Line 14 is the Annual Percentage Rate. Sharon is financing the car through the dealer forfour years because they are offering a lower rate of interest than her bank.

Line 15 is the Finance Charge**. This is calculated by subtracting the Amount Financed fromthe Total of Payments.

* The monthly payments are amortized which means that part of each payment covers the current interest on theunpaid balance with the remainder being applied to the principle owed. Because this is a difficult calculation,financial calculators and computers are normally used. This is why the monthly payment has been given in line 11.

** The method being used to calculate the finance charge is the simple interest method (interest on the unpaid balance).Using the simple interest method, you're only charged finance charges on the unpaid balance you owe at the time you makeeach payment. To calculate the finance charge using the simple interest method, the monthly payment must first becalculated.

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My Wheels Leasing vs. Buying 10


Leasing new vehicles has became as common as buying them. But few peopleactually understand what they're paying for when they lease a vehicle or howthe costs are calculated.

The lease worksheet below is an example of the actual costs Sharon wouldpay if she decided to lease the car rather than buy it.

Use the line by line directions on the following page to complete theworksheet.

Lease Worksheet

1. Price .............................................. 14,799.002. Documentation Fee ...................... 40.003. Acquisition Fee............................. 400.004. LAH Premium .............................. 0.005. Sales Tax (5.75%) ......................... _______6. License and Title.......................... 165.00 _______ (Gross Capitalization Cost)

7. Trade-In ........................................ 0.008. Down Payment ............................. 0.009. Rebate ........................................... 500.00 -_______ (Capitalization Reduction)

_______ (Net Capitalization Cost)

10. Net Capitalization Cost ............... _______

11. Term of the Lease.......................... 48 Months

12. Adjusted Residual......................... _______

13. Total Term Depreciation .............. _______

14. Monthly Lease Payment .............. 271.74

15. Total of Payments ........................ _______

16. Total Initial Payment .................. _______

Would you buy the car or lease it? Why?

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My Wheels Leasing Worksheet Instructions 11


Line 1 is the price the dealer is willing to sell the car for which is $500 less that themanufacturer’s suggested retail price (MSRP) of $15,299.

Line 2 is a fee that the dealership charges the customer for paperwork they must completeon the car.

Line 3 is a fee that includes charges added by the manufacturer and the lessor.

Line 4 is the premium for life, accident and health insurance if Sharon wants it. Thisinsurance will cover her lease payments if she is unable to make them because of her deathor the inability to work because of sickness or accident. She has declined this insurance.

Line 5 is the sales tax where the car was leased. It is calculated in the following way:(Selling Price + Doc Fee) x .0575

Line 6 is the cost of license and title for the car.Line 6 also lists the Gross Capitalization Cost which is the sum of lines 1-6.

Line 7 is the value of the trade-in (Sharon has none).

Line 8 is for any additional down payment that is made.

Line 9 is a manufacturers rebate that was given on the car.Line 9 also lists the Capitalization Reduction which is the sum of lines 7-9.

Line 10 is the Net Capitalization Cost of the car.Gross Capitalization Cost - Capitalization Reduction = Net Capitalization Cost

Line 11 is the term of the lease which in this case is 48 months.

Line 12 is the Adjusted Residual which is the value of the car at the end of the lease and theamount she would have to pay if she wanted to buy the car when the lease was up. This iscalculated by multiplying the Manufacturers Suggested Retail Price (MSRP) for the car($15,299) by the residual factor of 40%. The residual factor is determined by the lessor andbased on the term of the lease and the resale value of similar cars in the used car market.

Line 13 is the Total Term Depreciation and is calculated by subtracting the Adjusted Residualfrom the Net Capitalization Cost. This is the amount you're actually financing whenyou lease a car.

Line 14 is the Monthly Lease Payment which is determined by the lessor based on currentinterest rates.

Line 15 is Sharon’s Total of Payments: $271.74 x 48 = Total of Payments.

Line 16 is Sharon’s Total Initial Payment. This is the amount she must be prepared to pay upfront when she leases the car or is credited to her (i.e. rebate). This initial payment includesthe following:

1. 1st Monthly Payment2. Security Deposit = the monthly payment rounded to the next higher $253. Trade-In4. Rebate

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My Wheels Ask Andy 12


Andy Lendman writes a syndicated column called Ask Andy which is published daily in over200 newspapers. In the column, he answers questions and gives advice about personal finance.

As a member of Andy’s staff, you've been asked to answer the following question sent inby a reader.

Dear Andy:

I've just graduated from college and gotten my first full time job. The car I've beendriving is over ten years old and barely running. I've been shopping for a new one,but how do I decide whether to buy or lease?

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Letters

My Wheels Living Today 13


You're a writer for the TV series Living Today. You've been assigned the job of writing an outlinefor an upcoming episode titled "Don't Be Confused, When You Buy Used". The thirty minuteprogram will be divided into these three segments:

1. How to find a good used vehicle.2. How to evaluate a used vehicle.3. How to make the best deal on a used vehicle.

Episode Outline:Segment 1: How to find a good used vehicle.__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Segment 2: How to evaluate a used vehicle.__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Segment 3: How to make the best deal on a used vehicle.________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

LIVING TODAY

Don't Be Confused, When You Buy Used

You're a writer for the TV series Living Today and you've written an outline for an upcomingepisode titled "Don't Be Confused, When You Buy Used". The thirty minute program will bedivided into these three segments:

1. How to find a good used vehicle.2. How to evaluate a used vehicle.3. How to make the best deal on a used vehicle.

You’re now working on a story board of one of the three segments to be used by the director andcrew to shoot the video.

Sketch the video on the left (the quality of the drawing is not important) and write the dialog onthe right.

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Video Dialog

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You're a writer for the TV series Living Today. You've been assigned the job of writing an outlinefor an upcoming episode titled "Be Careful What You Do, When You Buy New". The thirtyminute program will be divided into these three segments:

1. How to choose the best new vehicle for you.2. Shopping around.3. How to make the best deal on a new vehicle.

Episode Outline:Segment 1: How to choose the best new vehicle for you.__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Segment 2: Shopping around.__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Segment 3: How to make the best deal on a new vehicle.________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

LIVING TODAY

Be Careful What You Do,When You’re Buying New

You're a writer for the TV series Living Today. You've been assigned the job of writing anoutline for an upcoming episode titled "Be Careful What You Do, When You’re Buying New".The thirty minute program will be divided into these three segments:

1. How to choose the best new vehicle for you.2. Shopping around.3. How to make the best deal on a new vehicle.



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You're a writer for the TV series Living Today. You've been assigned the job of writing an outlinefor an upcoming episode titled "More Than A Monthly Payment". The thirty minute programwill be divided into these three segments which discuss the costs of owning a vehicle:

1. Getting covered.2. Fill ‘er up.3. It will cost how much to fix!?

Episode Outline:Segment 1: Getting covered.__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Segment 2: Fill ‘er up.__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Segment 3: It will cost how much to fix!________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

LIVING TODAY

More Than AMonthly Payment

You're a writer for the TV series Living Today. You've been assigned the job of writing anoutline for an upcoming episode titled "More Than A Monthly Payment". The thirty minuteprogram will be divided into these three segments which discuss the costs of owning a vehicle:

1. Getting covered.2. Fill ‘er up.3. It will cost how much to fix!



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My Wheels Getting Covered 22


For each of the following situations, choosethe auto insurance coverage that would beused from the list on the following page.

Tracy Howard hit a telephone pole. She was injured and her car wasdamaged. Which two coverages will she use?

After a storm, Larry Johnson found that a tree had fallen on his car. Whichcoverage will he use to repair the damage?

Mary Cooper was struck by a hit-and-run driver while jogging. Whichcoverages will she use to help pay her medical expenses?

Jack Radke hit a parked car while backing into a parking space. Both carswere damaged. Which two coverages will he use to pay for the damages?

Debby Doerner is a high school senior. She bought an inexpensive used carto drive to school with money she earned during the summer. To keep herinsurance premiums down, which two coverages should she not carry?

Steve Findrick's car was stolen from the school parking lot. Which coveragewill pay for the car?

Marian Wick ran a stop light and hit a pedestrian. Which coverage will helppay for the pedestrian's medical expenses?

Bruce Zahn tried to pass in a no passing zone and had a head on collision.He and the other driver were injured and both cars were totalled. Whichcoverages will he use?

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My Wheels Auto Insurance Coverages 23


1. Bodily Injury Liability covers injuries to others when the policyholder is at fault in an accident. The coverageentitles the policyholder to legal defense by the insurance company and the payment of damages up to the limit of liabilitypurchased. Damages could include medical expenses, loss-of-income, pain and suffering, and permanent injury.

Two numbers will be shown on your policy for bodily injury liability coverage (i.e. 250/500). The first is the amount the policy willpay toward claims by one person ($250,000) and the second is the total amount the policy will pay per accident no matter howmany people make claims ($500,000).

2. Property Damage Liability covers damage to the property of others if the policyholder is at fault in an accident.The amount of coverage will be shown as the third liability number on the policy (i.e. 250/500/100). The coverage entitles thepolicyholder to legal defense by the insurance company and the payment of damages up to the limit of liability purchased(i.e.$100,000).

Most states require a minimum amount of liability insurance before you can register your vehicle. This is to protect other driversfrom your negligence.

If you're unable to buy liability coverage because of a poor driving record, you'll be placed in a state's assigned risk insurance pooland be assigned to an insurance company. You'll then be able to buy the minimum amount of liability coverage required by law,but the premium will be very high.

3. Collision covers damages to the policyholder's vehicle as a result of a collision with another vehicle or object or ifthe vehicle turns over. Payment is made regardless of who is at fault. The coverage includes a deductible which requiresthe policyholder to assume a portion of the cost of the damage. Common deductibles are $100, $250, and $500.

The insurance company has the option of either paying the cost of the repairs less the deductible or the actual cash value ofthe vehicle. It may not be economical to buy collision coverage because of this option if the value of the vehicle is small. For asubstantially higher premium, coverage is available which will replace the vehicle rather than paying the actual cash value.

4. Comprehensive Physical Damage covers damage to the policyholder's vehicle in situations other thancollisions such as fire, theft, and vandalism. The coverage may include a deductible which requires the policyholder toassume a portion of the cost of the damage. Common deductibles are $50, $100, and $250.

The insurance company has the option of either paying the cost of repairs less the deductible (if there is one) or the actual cashvalue of the vehicle. It may not be economical to buy comprehensive coverage because of this option if the value of your vehicle issmall. For a substantially higher premium, coverage is available which will replace the policyholder's vehicle rather than payingthe actual cash value.

5. Medical Payments covers the reasonable medical expenses of the policyholder and the policyholder's family in thefollowing situations:

1. If they're injured while riding in their vehicle.2. If they're injured while riding in someone else's vehicle.3. If they're struck by a vehicle while walking or riding a bicycle.

It will also cover guests riding in the policyholder's vehicle. The coverage pays regardless of who is at fault.

6. Personal Injury Protection (PIP) is mandatory in states with No-Fault insurance. PIP is actually abroader form of medical payments. It covers medical expenses, funeral costs, loss of income, and the costs of in-homeassistance regardless of who is at fault. It covers the policyholder and the policyholder's family.

7. Uninsured and Underinsured Motorist (Bodily Injury) covers the reasonable medical expenses ofthe policyholder and the policyholder's family if they're injured by a hit-and-run driver, an uninsured motorist, or an underinsuredmotorist. It will cover them while riding in their vehicle or if they're struck by a vehicle while walking or riding a bicycle. It willalso cover guests riding in the policyholder's vehicle.

My Wheels Michelle’s Auto Insurance 24


The chart below lists the coverages and semi-annual premiums for the insurance on MichelleDonnelly's compact car.

Use the information on the chart to answer the questions at the bottom of the page.

What is the total six month premium on the car? $_______________

Michelle has a part-time job to help pay for her car expenses. How much will she have to setaside from each bi-weekly paycheck (26 pay periods) to pay her premium ? $ _______________

If her take-home pay is $140, what percentage will be used for insurance? Round to thenearest 1/10th percent. __________%

Since Michelle borrowed the money from her bank to buy the car, what two coverages will theyrequire that she carry?

(1) _______________________________________ (2) _______________________________________

If she paid cash for the car, she could have excluded these two coverages. How much would shehave saved every six months? $ _______________ Would she want to exclude these coverages?

Yes: ___ No: ___ Why? ________________________________________________________________

What two coverages does the state require her to carry to protect other people?

1) _______________________________________ (2) ________________________________________

What percentage of her total six month premium is the premium for these two coverages?Round to the nearest 1/10th percent. _______________ %

List two factors that could raise her premiums.

(1) ____________________________________________________________________________________

(2) ____________________________________________________________________________________

List two ways she could decrease her premium and keep the same coverages.

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(2) ____________________________________________________________________________________

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Consolidated Mutual Insurance

A) 500/500 Bodily Injury Liability.............................................................................. $ 328.40B) 100 Property Damage Liability ............................................................................. 184.60C) $10,000 Medical Payments .................................................................................... 42.75D) 500/500 Uninsured and Underinsured Motorist Bodily Injury........................... 15.00E) $50 Deductible Comprehensive ............................................................................. 171.25F) $250 Deductible Collision....................................................................................... 655.50

Total Semi-Annual Premium $___________

My Wheels The Porter’s Auto Insurance 25


The chart below lists the coverages and semi-annual premiums for Kevin and Anne Porter's autoinsurance policy.


What is the total semi-annual premium on the car? $ _______________

What is the total yearly premium on the car? $ _______________

What percentage of the total semi-annual premium is each of the following coverages? (Dividethe premium for each coverage by the total semi-annual premium and round to the nearest1/10th percent.

Bodily Injury Liability .......................................................... %

Property Damage Liability ................................................... %

Medical Payments ................................................................. %

Uninsured and Underinsured Motorist Bodily Injury........ %

Comprehensive ...................................................................... %

Collision ................................................................................. %

Kevin Porter ran a stop sign and hit another car. For each of the following, enter the letter(A, B, C, D, E, F) of the coverage that would be used and the amount it would pay.

Damage to their car of $2,527.49 . . . . . . . . . . . . . . . . . . Coverage: _____ $

Kevin's medical expenses of $1,435.92 . . . . . . . . . . . . . . Coverage: _____ $

The other driver's medical expenses of $3,486.52 . . . . . Coverage: _____ $

Damage to the other car of $5,876.23 . . . . . . . . . . . . . . . Coverage: _____ $

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American Mutual Insurance Company

A) 500/500 Bodily Injury Liability ................................................................................ $190.50B) 100 Property Damage Liability................................................................................. 106.50C) $10,000 Medical Payments........................................................................................ 24.75D) 500/500 Uninsured and Underinsured Motorist Bodily Injury ............................. 15.00E) $ 50 Deductible Comprehensive .............................................................................. 99.00F) $250 Deductible Collision ......................................................................................... 379.50

Total Semi-Annual Premium $ __________

My Wheels Gary Field’s Auto Insurance 26


The chart below lists the coverages and semi-annual premiums for Gary Field's auto insurancepolicy. He is 17, the primary driver of his car and does not have the best driving record.


What is the total semi-annual premium on the car? $ ____

What is the total yearly premium on the car? $ _____

What percentage of the total semi-annual premium is Gary's liability coverage?(Divide the premium for the coverages by the total semi-annual premium and round to the nearest 1/10th %.)

______ %

What percentage of the total semi-annual premium is Gary's collision coverage? %

For the same six month period, Gary's parents paid $307.10 for the same coverages on theircar. How much more did Gary pay than his parents?

$ ____

Gary's semi-annual premium was what percent of his parent's premium? % (Divide Gary's premium by his parent's premium. Round to the nearest 1/10th percent.)

Which two coverages are designed to pay for damage to Gary's car?. . . . (1) _____ (2) _____

Which two coverages are designed to help pay for Gary's injuries?. . . . . (1) _____ (2) _____

Which two coverages are designed to protect others?. . . . . . . . . . . . . . . . (1) _____ (2) _____

If Gary turned his car over on a turn and did $3,468.48 in damage, how much would theinsurance company pay?

$ _

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Continental Insurance CompanyA) 100/300 Bodily Injury Liability ............................................................................ $ 490.70B) 100 Property Damage Liability ............................................................................. 274.30C) $10,000 Medical Payments .................................................................................... 63.75D) 100/300 Uninsured and Underinsured Motorist Bodily Injury........................... 15.00E) $100 Deductible Comprehensive ........................................................................... 255.00F) $500 Deductible Collision....................................................................................... 977.50

Total Semi-Annual Premium $ __

My Wheels Drive Defensively 27


You've been hired by the Continental Insurance Company to create a poster to bedistributed to all high schools in the country. The theme of the poster is "DriveDefensively".

My Wheels Drive Defensively 28


You've been hired by the Continental Insurance Company to write a thirty second radiocommercial on the theme “Drive Defensively”. It will be directed at high school studentsand played on rock stations around the country.

Sponsor: Continental InsuranceTopic: Drive DefensivelyStation: FM 97X - The Rock

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My Wheels The Think Tank - A Student Driving Survey 29


Your think tank team is going to make a survey of student drivers sixteen to eighteenyears old and complete a report on your findings.

As a team, determine a subject for your survey related to student driving. For example:1. Types of cars owned2. How do they pay for their cars3. Driving records4. Types of insurance coverage carried (liability, collision, comprehensive, etc.)5. Size of insurance premiums6. How car expenses are paid (gas, oil, tires, repairs, insurance, etc)

As a team, develop a series of survey questions that will help you gather the statistics youneed to explain your findings.

Determine the size of your sample and designate the number of students that each teammember should survey.

Designate one or more team members to develop charts and graphs illustrating your findings.

Designate one or more team members to write a report summarizing your findings.

Designate one or more members to present your findings to the class.

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My Wheels How To Fix A Flat 30


Write a set of step-by-step instructions describing how to change a flat tire for a personwho has never changed a tire before.

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My Wheels Glafka’s Semi-Annual Tire Sale 31


Use the sale prices above to compute the total costs at thebottom of the page. Sales tax is 6.25%. Round all answers tothe nearest cent. Then compute the percentage discount foreach tire.

SALE SALESITEM QUANTITY PRICE TAX TOTAL

P215/60R15 4 $310.00 $19.38 $329.38*

P225/50R16 1 _______ ______ _______

P185/70R13 2 _______ ______ _______

P195/60R15 4 _______ ______ _______

P245/50R16 4 _______ ______ _______

P205/50R15 2 _______ ______ _______

P225/60R15 2 _______ ______ _______

TOTALS _______ _______ _______

GLAFKA'S TIRE CITY, INC.

Tire Size Retail Price Sale Price

P185/70R13 $ 69.00 $ 62.10P195/60R14 $ 77.99 $ 71.40P205/75R14 $ 62.99 $ 51.99P195/70R14 $ 73.99 $ 63.99P225/60R14 $ 91.99 $ 84.99P195/60R15 $ 82.99 $ 77.99P205/60R15 $ 90.99 $ 82.69P225/60R15 $ 96.99 $ 85.79P215/60R15 $ 87.99 $ 77.50P215/65R15 $ 85.99 $ 76.99P195/50R15 $126.99 $120.00P205/50R15 $133.99 $123.89P225/60R16 $139.99 $124.99P225/50R16 $149.00 $135.99P245/50R16 $167.99 $149.99

%Tire Size Discount

P185/70R13 10.0%**

P195/60R14 _______

P205/75R14 _______

P195/70R14 _______

P225/60R14 _______

P195/60R15 _______

P205/60R15 _______

P225/60R15 _______

P215/60R15 _______

P215/65R15 _______

P195/50R15 _______

P205/50R15 _______

P225/60R16 _______

P225/50R16 _______

P245/50R16 _______* $77.50 X 4 = $310.00 $310.00 X .0625 = $19.38 $310.00 + $19.38 = $329.38

** $69.00 - $62.10 = $6.90 $6.90 / $69.00 = 10.0%

My Wheels Daily Gazette Opinion Page 32


The state legislature is considering a bill that would require proof of high schoolgraduation or age 18 as the minimum requirement for obtaining a driver's license.

Write a letter to the editor explaining why you think the legislature shouldpass or reject the bill.

I think the legislature should pass this bill because:

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I think the legislature should reject this bill because:

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Graduate To

Drive!


My Wheels Daily Gazette Opinion Page 33

Congress is considering a bill that would ban all vehicles with gasoline engines after2020.

Write a letter to the editor explaining why you think Congress should passor reject the bill.

I think Congress should pass this bill because:

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I think Congress should reject this bill because:

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BanGasolineEngines

My Wheels Gasoline Prices 34


The chart below compares the prices of regular unleaded gasoline on June 26th in 2001, 2006and 2007 in the 50 states and District of Columbia.

Compute the percentage change in price from June 26, 2006 to June 26, 2007. Roundanswers to the nearest 1/10th%. Alaska is done for you as an example.

$3.14 - $3.01 = $ .13 $ .13 / $3.01 = .04318 = 4.3%

$3.09

06/26 06/26 06/26 %State 2001 2006 2007 Change

West CoastAlaska............... $1.63 $3.01 $3.14 4.3%

Arizona ............. $1.30 $2.89 $2.97 _______

California .......... $1.43 $3.18 $3.19 _______

Hawaii............... $1.92 $3.40 $3.41 _______

Nevada............. $1.37 $3.00 $3.14 _______

Oregon ............. $1.49 $2.98 $3.08 _______

Washington ...... $1.48 $3.06 $3.11 _______

Rocky Mountain

Colorado........... $1.24 $2.83 $3.16 _______

Idaho ................ $1.45 $2.90 $3.16 _______

Montana ........... $1.43 $2.82 $3.14 _______

Utah.................. $1.36 $2.90 $3.18 _______

Wyoming .......... $1.33 $2.78 $3.10 _______

Gulf Coast

Alabama ........... $1.13 $2.71 $2.86 _______

Arkansas........... $1.11 $2.68 $2.86 _______

Louisiana.......... $1.14 $2.73 $2.88 _______

Mississippi ........ $1.12 $2.71 $3.12 _______

New Mexico...... $1.23 $2.94 $3.21 _______

Texas ................ $1.11 $2.78 $2.89 _______

Midwest

Iowa.................. $1.13 $2.72 $2.93 _______

Illinois ............... $1.21 $2.96 $3.15 _______

Indiana.............. $1.11 $2.79 $2.93 _______

Kansas ............. $1.12 $2.75 $2.95 _______

Kentucky........... $1.14 $2.75 $2.92 _______

Michigan........... $1.16 $2.85 $3.04 _______

06/26 06/26 06/26 %State 2001 2006 2007 Change

Minnesota......... $1.18 $2.83 $2.92 _______

Missouri ............ $1.05 $2.68 $2.85 _______

North Dakota .... $1.24 $2.83 $3.05 _______

Nebraska.......... $1.10 $2.80 $3.06 _______

Ohio.................. $1.12 $2.76 $2.88 _______

Oklahoma......... $1.07 $2.67 $2.87 _______

South Dakota ... $1.21 $2.82 $3.08 _______

Tennessee ........ $1.11 $2.68 $2.85 _______

Wisconsin ......... $1.22 $2.93 $3.06 _______

East Coast

Connecticut ...... $1.32 $3.11 $3.20 _______

DC .................... $1.36 $3.11 $3.11 _______

Delaware .......... $1.13 $2.95 $2.87 _______

Florida .............. $1.19 $2.82 $2.94 _______

Georgia............. $1.02 $2.76 $2.88 _______

Massachusetts . $1.23 $2.96 $2.95 _______

Maryland........... $1.20 $2.97 $2.95 _______

Maine................ $1.24 $2.76 $2.99 _______

North Carolina .. $1.13 $2.76 $2.91 _______

New Hampshire $1.24 $2.87 $2.92 _______

New Jersey ...... $1.13 $2.89 $2.84 _______

New York .......... $1.33 $3.05 $3.17 _______

Pennsylvania .... $1.14 $2.81 $2.95 _______

Rhode Island .... $1.26 $2.97 $2.94 _______

South Carolina . $1.06 $2.62 $2.78 _______

Virginia ............. $1.09 $2.79 $2.84 _______

Vermont ............ $1.29 $2.85 $2.99 _______

West Virginia .... $1.22 $2.82 $2.97 _______

My Wheels Gasoline Prices 35


List several factors that affect the retail price of gasoline in the United States.

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Why do you think there is such a variation in gasoline prices from region to region,state to state and city to city?

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As a driver and car owner, what can you do to lower the amount you have to pay forgasoline?

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My Wheels You Decide 36


The rising price of gasoline is affecting people in different ways. Here are four real life situations. After readingeach one, explain what you believe the people should do as they try to adjust to the rising price of gasoline.

1) Bill MartinBill lives and works in the same small town. He drives an SUV that gets 18 miles to the gallon,but it’s paid for.

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2) Aaron WrightAaron will graduate from college in May and has accepted an engineering job 20 minutes drive from his apartment. Hehas been driving an old car his parents gave him while he’s been in school and is anxious to buy his first new car.

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3) Moesha CarlsonMoesha lives in Rock Island, Illinois and drives 110 miles round trip each day to her job as a bank branch manager inSterling, Illinois. Her husband works in Rock Island and they have one child in 2nd grade and one preschooler. Shedrives a car that gets 28 miles to the gallon and has two years of payments to make.

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$3.09

My Wheels You Decide 37


4) Rachel CartwrightRachel is single and lives and works in Augusta, Georgia. She’s ready to buy her first new car and wants to go allelectric. She’s searched the internet hoping to find an electric car that has a range of 75-100 miles on a full charge; hasa maximum speed of at least 55 mph and is reasonably priced. Unfortunately, she can’t find what she wants.

What she is considering is the EL2. Here are the specs.

Suggested Retail Price: $14,995.

Range: 65 miles fully charged

Top Speed: 45 miles per hour

Passenger Load: 2

Cargo Space: Limited

Do you think Rachel should buy an EL2? What do you think are the advantages and disadvantages in each of thefollowing situations:

1) Driving to work in Augusta.

2) Driving outside of Augusta.

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My Wheels The World’s Greatest Commuter Car 38


The President has challenged the nation’s automotive designers to create the World’s Greatest Commuter Car. Itmust be affordable, (for millions of people who drive over thirty minutes to work in the United States each day)practical, fuel efficient (to decrease our dependence on foreign oil), safe and offer as many features as possible to maketheir time spent in the car enjoyable and productive.

On the following page(s), draw your designs. In the space below, number and explain the features of thecar and place corresponding numbers on your designs.

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My Wheels The World’s Greatest Commuter Car 39


My Wheels Assessment - True or False 1


Vehicles tend to appreciate in value.

Leasing a vehicle is more like renting than buying.

You can buy a vehicle at the end of a lease for its residual value.

The longer the term of a car loan, the smaller the payments.

Automobile liability coverage normally has a deductible.

You do not have to pay sales tax when you buy a vehicle.

You can't get a new car loan for more than 4 years.

The longer the term of a car loan, the larger the finance charge.

Collision coverage normally has a deductible.

Lease payments are actually paying the depreciation on a vehicle.

You should carefully evaluate a used vehicle before you buy it.

The Annual Percentage Rate should be used to compare the cost of car loans.

Most people make their car payments monthly.

Gasoline prices vary from state to state and city to city in the United States.

For young people (16-24), insurance is a small portion of the cost of car ownership.

The demand for and supply of oil is the major factor in the cost of gasoline.

If you cause an injury and have liability coverage, your insurance will pay the totalamount no matter what the cost.

You can finance a new vehicle at the dealership where you buy it.

You must pay sales tax when you lease a vehicle.

An car insurance deductible is the portion of a loss the policyholder must pay.

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Place a T before each true statement and an F before each false statement.

My Wheels Assessment - Math Problems 2


Solve each of the following problems. Consider only the information given.

The price of a used car was $8,500 Sales tax was 5%. What was the cashprice? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The cash price of a used car was $6,884.70. With a $1,000 down payment,the dealer financed the car for $149.88 a month for 48 months. What wasthe finance charge? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The manufacturer's suggested retail price of a new SUV was $26,800. Theresidual value of the vehicle after a three year lease was 52% of the MSRP.How much did the vehicle depreciate during the lease? . . . . . . . . . . . . . . .

The price of a new hybrid car is $24,499. The documentation fee is $40,license and title is $168, and sales tax is 6%. The buyer has been given a$6,500 trade-in allowance on his old car and will finance the new car for 5years. The monthly payment will be $380.21. Compute each of thefollowing.

Amount Financed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total of Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Finance Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total Credit Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A commuter drives 2,480 miles a month in a car that gets 25 miles to thegallon. If the price of gasoline is $3.15 a gallon, what is the monthly cost ofgasoline? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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My Wheels Assessment - Multiple Choice 3


Read each of the situations and determine which insurance coverage or coverageswould pay for the expense listed. There can be more than one answer or no answer.

A. Bodily Injury Liability D. Comprehensive Physical DamageB. Property Damage Liability E. Medical PaymentsC. Collision F. Uninsured and Underinsured Motorist Bodily Injury

Carl Watson turned his car over on a curve. Which coverage will pay foreach of the following?(1) Carl's car damages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(2) Carl's medical expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(3) Carl's loss of income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sharon Sanders ran a stop sign and hit a car driven by Veronica Jones.Which coverage will pay for each of the following?(1) Sharon's medical expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(2) Sharon's car damage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(3) Veronica's medical expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(4) Veronica's car damage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Hildegard Gath was leaving work and found that her car had been hitin the parking lot. What coverage will pay for the damages? . . . . . . . .

Terry Newhouse lost control of his car and drove through the front of astore. Which coverage will pay for each of the following?(1) The damage to the store . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(2) Terry's medical expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(3) Terry's car damages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(4) A store clerk's medical expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Berry Johnson left his house and found that his car had beenvandalized. Which coverage will pay for the damages to the car?

Valerie Hays was struck by a hit-and-run driver while jogging. Whatcoverage will pay for her medical expenses? . . . . . . . . . . . . . . . . . . . . .

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(1) A B C D E F (2) A B C D E F (3) A B C D E F

(1) A B C D E F (2) A B C D E F (3) A B C D E F (4) A B C D E F

(1) A B C D E F

(1) A B C D E F (2) A B C D E F (3) A B C D E F (4) A B C D E F

(1) A B C D E F

(1) A B C D E F

Documents

My Wheels Gary Benson’s Commute 1 - Lancaster High School...My Wheels Gary Benson’s Commute 2 Name: _____ Class: _____ Period: ____ To get from his apartment in DeKalb, Illinois

My Wheels Gary Benson’s Commute 1 - Lancaster High School...My Wheels Gary Benson’s Commute 2 Name: ___ Class: _ Period: __ To get from his apartment in DeKalb, Illinois