Web Application Chapter 11 page 443

Janet Spinella is going to purchase a new truck. She would like to trade in her old truck, but has no idea of the value of the trade-in. Go to www.kbb.com and find the value of her 1991 Ford Ranger Pickup (S Short Bed) trade-in. From the Kelly Blue Book homepage, click on Used Car Value, then follow the Trade-In link. Next, select the Year, then Ford, and then select Judy's Pickup model . Once there, select options, condition of the truck, and mileage. Try different combinations of options, mileage and condition to see how these variables can affect the trade-in value.

1. What is the trade-in value? Be sure to include the options, mileage and condition you entered.

Once Janet has determined the trade-in value of her truck, she is ready to take the next step. She needs to do some research on new trucks. Go to www.autoweb.com and select New Car Showroom. Choose a new truck for Spinella and specify which options she should get.

2. What is the manufacturer's suggested retail price (MSRP) of the new truck? Specify the year, make, model, and options you chose.

Now go to quote.yahoo.com, choose Loans, and then auto loan quotes. Fill in the appropriate fields to determine an interest rate for the loan. Use different scenarios to see how they affect the interest rate. Answer the following.

3. What interest rate did Spinella get on her loan? Indicate whether you chose "excellent," "good," or "poor" for the credit rating.

4. What is the expected amount of the loan? Assume no additional down-payment other than trade-in.

5. What are the monthly payments of this loan? Specify the term (number of months) for the loan you chose.

Include the date of the information in your answer.

© Copyright 2000 Addison Wesley Longman, Inc.