Car Loan: Unlocking Financing
⬇ Download Teacher GuideThis interactive lab drives students into the world of auto financing. Students will understand the need for a car loan to achieve their dream goal of owning a car. The lab is divided into two sections - "Car Loan Basics" and "Car Loan Options and Risks", each section containing reading materials, several interactive worksheet activities, quizzes, and writing activities.
At the end of every section, teachers are provided with materials to conduct classroom discussions that will reinforce student learning.
1. Car Loan Basics
- Before diving into car loan details, students will do a quick start activity to help John save for his dream car.
- Understand the need for a car loan to achieve a car dream faster.
- Learn about car loan-related terms such as down payment, principal amount, interest rate, etc.
- Understand the difference between APR and interest rates.
- Learn about factors affecting the APR, such as credit score, loan duration, etc.
- Understand and analyze an amortization schedule
2. Car Loan Options and Risks
- Analyze the difference between leasing a car vs. buying a car with a loan, and analyze a sample lease agreement to understand the financial benefits of each.
- Understand the need to adjust their budget for a new car.
- Do a worksheet to find the total cost of car ownership and understand that it is not just the loan payment, but fuel cost, insurance, etc. and they should be considered in the budget.
- Read about the car loan pitfalls such as predatory lending tactics.
- Use the internet to compare their two favorite cars in terms of the given parameters.
- Read the story of Sarah, who impulsively purchased a luxurious car and ended up in financial trouble
This comprehensive car loan education lab is designed to provide students with a solid foundation in car loans through interactive and practical activities, empowering them to navigate the intricacies of personal finance.
Student Feedback
I will remember how to find the monthly payments and having to look through websites about cars the most as they were two activities I struggled a lot with.
I will remember most that car loans are really complicated and that you should definitely do your research on the type of car before getting too attached to it and figure out ways how to get the car cheaper.
I will remember the information about interest rates and amortization the most since I was not very sure about it at first but after reading the section about those I understood it well.
The things that stood out in the lab was the interactive graphs and answering questions at the bottom.
I will remember the important facts I learned when it is time for me to purchase my first car.
Learning about leasing and buying a car.
I will remember the amortization tables and how to plan your payments. Another thing that I will remember is the difference between leasing and buying a car. Finally I will remember some of the things to look out for when buying a car.
The cheezy emojis at the end of each section
big down payments are good
Future planning of getting a car and loan, looking at credit score
Down Payments, Interest, Amortization, and Leasing.
probably the importance of being creditworthy and not loaning a car for such long periods of time. I will also remember that leasing a car is somewhat better than buying but only if you can afford it.
I will remember the page about leasing vs owning a vehicle.
The fact that when you enter the answer, it tells us if we are right by giving us a green checkmark
What increases and decreases the monthly payment of a car.
Probably how easy it was to understand the things being taught.
Learning about leasing verse owning.
How car loans work, the graphs and the emojis each time you get a good mark
Calculate everything to be able to fully understand if you are able to really afford what you want and how much you can save from buying a car.
the equations used
Down payments
I will probably remember stuff about being careful when buying a car and to only buy what you can afford.
Learning how to estimate loan costs and save money.
Sarahs story
