“Deals on Wheels!” - Car Loan Project

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Brief Project Overview

In this project students will learn about budgets, car purchasing, and using credit. They will calculate monthly car payments including tax and license fees, vehicle trade-in and down payments. While this lesson is intended to educate the consumer, and thus all students, there are many career opportunities related to the field of finance. Perhaps this will get students thinking about one.

Appropriate Subjects and Grade Levels

• Economics
• Accounting
• Business Concepts
• Business Law
• Business Math
• Financial Records

Length of Project

One 55-minute class period; Handout #3 could be continued as homework assignment

• Optional— one additional 55-minute class period for job description & role-play assignment
• Optional— one additional 55-minute class period for guest speaker, job description & role play

NOTE: The length of this project is an estimated minimum time needed for completion that may easily be expanded upon. The length of time will naturally increase as the project is expanded upon by the teacher as it is adapted to meet classroom and curriculum goals.

Teacher’s Materials Provided

• Deals on Wheels Lesson Plan
• Outcomes/Products Assessments and Standards Matrix - identifies lesson outcomes, standards addressed, and ways to measure learning; brief descriptions of corresponding student activities.
• Calculating Amount to Be Financed/Borrowed - may be used as a blank overhead to demonstrate completion of student worksheet.
• Calculating Amount to Be Financed/Borrowed Sample Teacher Overhead - overhead master with sample calculation already filled in.
• Calculating Amount of Monthly Payment, Total Finance Charge and Total Cost of Loan - may be used as a blank overhead to demonstrate completion of student worksheet.
• Calculating Amount of Monthly Payment, Total Finance Charge and Total Cost of Loan Answer Key
• Budget & Pie Chart Rubric - clarify budget & Pie Chart assignment requirements and assessment criteria.
• Budget Essay Rubric - clarify Budget Essay assignment requirements and assessment criteria.
• Optional additional activity materials listed below.

Student Materials Provided

• Calculating Amount to Be Financed/Borrowed Student Copy - worksheet for calculating car loan amounts
• Calculating Amount of Monthly Payment, Total Finance Charge and Total Cost of Loan - worksheet for calculating monthly car payments
• Creating a Budget - assignment instructions
• Budget and Pie Chart Rubric - clarify Budget & Pie Chart assignment requirements
• Budget Essay Rubric - clarify Budget Essay assignment requirements
• Optional follow-up activity materials listed below

Classroom Facilities Needed

• Computer/printer for students
• Internet access
• Word, Excel, Publisher (optional)
• Overhead projector

Student Supplies Needed

• Calculators
• Storage Media: disks, CD's, zip disks, USB storage

Teacher’s Preparation Checklist

• Review Outcomes/Products and Assessments Matrix, Lesson Plan , student materials and perhaps the recommended background materials.

• Practice following the student’s exercise directions
• Make one copy of each handout per student:
  • Calculating Amount to be Financed/Borrowed Student Copy
  • Calculating Amount of Monthly Payment, Total Finance Charge and Total Cost of Loan
  • Creating a Budget
  • Budget and Pie Chart Rubric
  • Budget Essay Rubric
• Gather calculators and disks

Recommended Background Materials

• No-Brainers on Buying a New Car (1998) video

• The Insiders Guide to Buying a New or Used Car book by Burke Leon, Stephanie Leon

• Car Secrets Revealed book by Corey Rudl 

Optional: Follow-up Activities

• Financing Practice Problems Student Copy, Financing Practice Problems Answer Key
• Loan Agent Interview
• Create a Job Description from the interview results, Job Description for a Career in Finance Rubric
• Role play the process of obtaining a loan depicting current interest rates, what rates students could qualify for, and how a person could qualify for the lowest rate possible (using information obtained from the interview)
• Invite a guest speaker from a car dealership’s finance department
 

“Deals on Wheels” Car Loan Project

Written and Edited by:

Beth Islip
Susan Espana
Kay Fegette
Jeanne Sampson
Mike Walker

Sierra Community College developed and produced the Business Industry Sector Grant for Finance and Business.  Funding provided by the Carl D. Perkins Vocational and Technical Education Act of 1998 through the California Department of Education.

For more information please visit: FAB.SierraCollege.edu

Sierra Community College , through the Finance and Business Insustry Sector Grant, worked with high school teachers in a two-year long project to create and test these classroom project lesson plans. The objective was to provide high quality, ready-to-use lessons that integrated vocational and academic standards, concepts and curriculum.

Read more about the FAB grant and its mission.