Personal Finance Week 20 Assignment

This week’s assignment was a little different than the normal writing assignment. I was to find a particular car make and model that would be the most practical for me. I will cover the total cost of the car, the monthly payment I would have to make, and create an estimate of the gas, insurance, repair, and maintenance costs assuming I would drive 12,000 miles a year.

The car I chose: The Toyota Corolla. Here’s why:

The Toyota Corolla is one of the best-selling cars in the world, and for good reason! Corollas are known for reliability, cheap maintenance, and low price.

Here is the total cost for a used 2006 Toyota Corolla S with 90,000 miles. (All prices are approximate!)

List Price: $7,995

Tax: $480

Registration and documentation fees: $200

Insurance: $5,000 per year

Gas: $500 per year

Annual maintenance cost: $500

Total cost for the first year: $14,675

Cost for 2nd year and later: $6,000

Phew, glad that’s over! I had no idea how expensive insurance is!

Loan rate:

For a 4 year loan with a 25% down payment, and a good credit score, the loan will cost $144 per month.

Even though I won’t be driving for another 2 or 3 years, this assignment was still very helpful. I realized how expensive owning a car can be!