User:Atcovi/FinanceProjectApril

https://build.landrover/B8B98911

Although a typical selection, my dream car has always been the 2023 Range Rover. This is because of a special story that occurred in 2009. My mother introduced me to a beautiful Range Rover and told me that I better get that car when I am of age to get one. I looked her in the eye and whispered in agreement: “You betcha”. Now, it’s time to turn “betcha” into “gotcha”. We are here right now turning dreams into reality.

Now this is going to be off, but the truth is I kept this car plain and simple. Why? Because of a famous saying in our family: “Simplicity is the pimpity to the complicity of authenticity”. This means that with simple things, we are able to embellish them into authentic, true versions of oneselves. Therefore, I installed no features in order to keep this as authentic as possible. A steering wheel, functioning car, a seatbelt, and some space is all I need to get my dream car on the road and working. Who needs the extra costs when the car itself is so expensive?

As humbly requested, here are the hidden costs associated with the 2023 Range Rover:


 * New car sales tax - 104,500 * .0415 = $4336.75
 * Title fee - $15
 * License and registration fee - $25.00 + $35.75 = $60.75
 * Destination and delivery fee - $1,350.00
 * Dealer processing/administration fee - (Savannah from Parks Chevrolet Richmond said $7.99)

The two finance options I picked were from Virginia Credit Union:


 * 1) up to 48 months - 1.99%
 * 2) up to 66 months - 1.99%

The overall cost for the car is 104,500+4336.75+15+60.75+1350.00+7.99= $110270.49. The down payment for the car is 110270.49*.10= $11027.049. The amount to be financed following the downpayment is 110270.49-11027.049= $99243.441.

48 months, 1.99% MONTHLY PAYMENT

 * d = $267.62

Total Amount To Pay For The Car
(267.62 x 48) + $11027.049[interest] = $23,872.809

66 months, 1.99% MONTHLY PAYMENT

 * d=225.202531

Total Amount To Pay For The Car
(225.202531 x 66) + $11027.049[interest] = $25890.416

An Affordable Plan


 * Affordable Monthly Plan: $150/month

I'm choosing the 48 months, 1.99% plan as it's the cheapest APR and for the shortest time. It costs less money than the "66 months, 1.99%" plan overall. This time, the monthly payment is set way lower at $150/month.

The total amount of money paid from this plan would be $55,624.55. The downpayment for this car would be 110270.49-55624.55= $54,645.94. I’d prefer to give off a larger amount of money upfront and pay considerably less for the months to follow.

Plan I
You find a bank offering 6% interest compounded monthly for 5 years. How much do you need to deposit monthly for the 5 years to obtain your desired down payment?


 * Formula: Savings Annuity
 * Answer: d = $783.23 dollars a month

Plan II
You find a bank offering 6% interest compounded monthly for 5 years. How much do you need to deposit NOW to obtain your desired down payment?


 * Formula: Compound Interest Over Time
 * Answer: PO: $40512.9805

Plan III
You find a bank offering 6% simple interest for 5 years. How much do you need to deposit NOW to obtain your desired down payment?


 * Formula: Simple Interest Over Time
 * Answer: PO: $42035.3385

Which Plan Is Superior?
Both Plan II & Plan III require me to deposit a massive amount of money for my down payment initially. Plan II requires me to deposit $40,512.98 dollars while Plan III requires me to deposit $42,035.34 dollars. Plan III’s downpayment is $1,522.36 dollars more expensive.

On the other hand, Plan I offers to pay $783 dollars a month, which is extremely expensive. I wouldn’t be able to financially maintain such a high monthly payment, so I would have to look at Plan II & Plan III. In this case, I would pick to pay Plan III’s payment as I’m able to pay an expensive down payment first and pay a smaller monthly payment as its simple interest and not compound interest.