Personal Finance: Finding a practical car

My assignment for this week is less an essay and more a research project. I am supposed to ind a particular car make and model that would be practical for me and figure out how much it would cost me. Since I am not yet sixteen, I was told to imagine my circumstances when I do reach sixteen. So here is what I have found.

My priorities when shopping for a car were outlined last week, so I followed those. I have been eyeing the Elio for a couple of years now, and it looks pretty good. It definitely has a low up front price, and has a good projected fuel economy. Now the predictions for both were way too optimistic and the tests keep forcing them to raise the price and lower the miles per gallon, but unless the price skyrockets or the mpg plummets, then it is still a good choice for me.

If I reserved an Elio now with manual transmission and no features at all, then it would be 7,300 dollars without taxes or any other fees. If I took out a 3-year loan at 3% interest then that would be $212 a month on monthly payment. If I drove 3000 miles a year (this guess is probably way off the mark; I don’t know how much I will be driving at all), then I would pay $2 per gallon of gas, and at 64 mpg, I would pay approximately $100 dollars a year in gas. This is probably a bit low, as Elio Motor’s fuel economy estimate is a bit too optimistic. I do not know how much insurance would cost, so I may have to skip that.That amounts to approximately 300 dollars a year.

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2 thoughts on “Personal Finance: Finding a practical car

  1. You cannot leave out insurance if you are trying to estimate costs. Insurance for teenage boys is very high! I have not heard of this car before. I guess I should investigate.

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    • The reason that I cannot estimate insurance is the same reason that you have not heard of this car before: it doesn’t exist yet! This is why I said “the predictions are probably too optimistic.”

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