• Calculate the monthly payment and interest expenses of a car loan
• Compare costs and pros and cons of leasing, owning a new car, and owning a used car
• Determine the costs associated with operating a car, such as gas mileage, fuel costs, and savings for maintenance expenses

Driving Decisions: Navigating the Financial Considerations of Car Ownership

Commuting to work via public transportation is taking a lot of time out of Zander’s day. They are contemplating if owning a car could improve their situation. Leasing a car, buying a new one, or going for a used vehicle – each have their own financial implications. Moreover, ongoing car maintenance and operating expenses also have to be kept in mind. Let’s delve into these different scenarios and understand them better.

Zander is considering buying a used car, priced at [latex]$8,000[/latex].

Now, having estimated the monthly payments for the potential car loan, Zander must look at the other running costs associated with car ownership. The car Zander is interested in purchasing has a fuel efficiency of [latex]28[/latex] miles per gallon.

While we have covered the cost of the car loan and the gasoline, Zander needs to remember that car ownership comes with other expenses as well.

Having accounted for the potential costs, Zander starts considering the recurring cost of owning a car. One unavoidable cost is car insurance.