Function Project Research HW What did you learn Why do we pay interest If you have enough money to pay for a car the day you take it from the dealership thats the least expensive way to go Why do we pay interest ID: 729357
Download Presentation The PPT/PDF document "Selling Cars Function Project" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Selling Cars
Function ProjectSlide2
Function Project Research HW
What did you learn?Slide3
Why do we pay interest?
If you have enough money to pay for a car the day you take it from the dealership, that’s the least expensive way to goSlide4
Why do we pay interest?
Most people cannot do this, so they pay the car off over time and pay an additional monthly fee in order to do so
This monthly fee is called “interest”Slide5
Why would I want a down payment?
Some people choose to pay some money towards their car right away so that they pay interest on a smaller amount of money
This initial payment is called a “down Payment”Slide6
You are a car salesperson!
For this project, each team member will represent a different dealership that is attempting to get a client to buy a car from their dealershipSlide7
Simpleville
The dealerships are all in
Simpleville
, which has strict laws to ensure that everything is always considerate, fair, and…of course…simpleSlide8
Simpleville
In
Simpleville
, car dealerships all have to offer a customer the best interest rate that the customer is approved for
Interest is added on to the price, so the less interest you have to pay, the better!Slide9
Simpleville
In
Simpleville
, dealerships are also only allowed to offer loan terms of either 4 or 5 years Slide10
Customer Information
Facilitators will
choose a customer card from the bucket
As a team, fill out the customer information box on your documentSlide11
My Dealerships Offer
Reader, read the next box
As a team, fill out this sectionSlide12
What car should our customer choose?
Supply managers, get
ONE
chromebook
for your team
Reporters, you need to research your teammates’ suggestions and ideas
Facilitators,
make a final decision if necessarySlide13
How much will I charge the customer?
Subtract the down payment you chose from the price of the car. This gives you the loan principal.
Take the loan principal times your interest rate (as a decimal!)
This is the interest for 1 year only.Slide14
How much will I charge the customer?
Take the interest for 1 year times the number of years for your loan term. This gives you the total interest payment.
Add the total interest payment onto the loan principal (
the difference from the first step
) to get the total loan amount.
Divide this amount by the number of months of the loan term to get the monthly payment.Slide15
How much will I charge the customer?
Take the monthly payment times the number of months of the loan term
Then add on the down payment
This is the final cost of the car for the customerSlide16
Congratulations!
You just made your first (maybe only?) Car sale offer Ever!