Project Two (Numbers: Budgeting and Credit) Can you afford to buy your ideal car? Clarify: Our grandparents have given us $3400 to buy a car that is in good condition. The car has to be over the amount of $10 000. I have to prove that I can afford the car to get the personal loan and also have to prove that I can run it as well as just purchase it. My annual wage is $23 000. Some factors when buying a car could include: i. Can we get insurance? ii.
Can we afford to run the car? iii. Get a RAC report on the car to see whether there is anything wrong with it. Some cost involved in buying a car could be: i. Running Cost ii. Actual car iii.
Insurance iv. RAC report v. Transfer fee I am going to take out my loan at ANZ Bank as I have researched that they have the cheapest rates. Some assumptions that I have made are: i.
The cost of fuel is 89 cents per litre ii. I am living with my parents iii. I have a mobile phone bill every month iv. My annual income has already been tax reduced v.
I already have $2000 of my own money saved vi. And I am 27 years of age. Other living expenses could include: i. Spending money ii.
Food – Take away iii. Bills – Mobile Phone Choose: It would cost me $2082. 60 on fuel to run my car for one year. 89 cents per litre – 10 L/Km = 450 Km per week… 89 45 = $40. 05 = $40.
05 52 = $2082. 60 The way I would set out my plan would be: Income per week = Board – from income, – phone bill, – repayments, – spending money = ? ? ? And then use the rest on maintenance on the car + fuel cost. Use: The Car costs $13 990 and I have $5300. I am going too take out a loan of $10 000 of a period of one year.
To purchase my car it would cost overall $11000 + $150 transfer fees. The way I will repay will be by: $23 000/52 = $442. 30 Repayment = $11 000/52 = $211. 55 $442. 30 – Board/ per week = $50 – Phone bill = $10 per week = $170. 75 – Spending money = $100 = $70.
75 = $70. 75 – $40. 05 for fuel = $30. 70 which can be used on the maintenance on the car or others. Running the car for one year: i. $2082.
60 for fuel ii. $700 on insurance iii. $290 on maintenance = $ 3077. 60 for the year.
Interpret: If I get the loan I will be able to buy the car and I will be able to run the car as well as live if I follow the plan which I have just created. In this investigation I had to do some research on the insurance companies and the cost of RAC reports on cars so I should make this project work. Report: To ANZ Bank To Whom It May Concern: I am writing this letter o confirm my personal loan that I am trying to receive and in this letter will contain my evidence that I can afford to pay off the loan over a one year period. I am requesting for a loan of $10 000. I have an annual income of $23 000 and I have made a plan to make sure I can afford the car as well as run it and live a quiet comfortable life. The plan which I made is: $23 000/52 = $442.
30 Repayment = $11 000/52 = $211. 55 $442. 30 – Board/ per week = $50 – Phone bill = $10 per week = $170. 75 – Spending money = $100 = $70. 75 = $70. 75 – $40.
05 for fuel = $30. 70 which can be used on the maintenance on the car or others. This evidence that I can afford the car and repay the loan comfortably as well as living a normal life. I hope you will make the right decision by giving me the loan as it will be greatly appreciated. Yours faithfully, Triton Petrol.