Used Car Log


Choice Two: Drive Free

Instructions:

  1. Carefully consider the message of the "Drive Free, Retire Rich" video.
  2. Download theUsed Car Logdocument.
  3. Either shop around at car lots in your area or look at online or newspaper ads to find a great car that you would like to buy. Look for a car that is two to three years old. Be reasonable with your expectations—you do not need a Porsche!
  4. Write the cost of the car you find in the blank marked "goal" at the top of the used car log. Then, figure out how much you need to save per month for the next 20 months to reach that goal.
  5. Since you need something to drive between now and then, find two other cars you could buy in the meantime. Start with a car around $1,500.
  6. Then, find a car in the mid-range between the $1,500 car and the one you are ultimately working toward.
  7. Assume you would buy the second car after about 10 months of saving.
  8. Fill in the required information for all three of these cars on the used car log.
  9. Remember, the money used to buy the first two cars is not "lost." You will sell the current car before buying a newer one, so you will apply the proceeds from that sale toward the purchase of the next car. For the purposes of this activity, and because you will have owned the first two cars for less than a year before selling them, you can assume you will sell them for the amount you paid for them.
  10. Using the information on the used car log, create a timeline of the entire 20 months. You can create this digitally using a graphic program.
  11. On the timeline, include the following for each car purchase:
  12. Purchase date
  13. Picture of the car
  14. Purchase price
  15. Number of months required for savings

Goal Car: ______Cost: ______

Used Car 1 / Used Car 2 / Goal Car
Cost / $1,500
Number of months to save / 0 / 10 / 20
Amount saved per month / 0
Resale amount / 0
Total amount available for new car / $1,500

Create your Timeline below and submit for 4.06: