Car Loan: Unlocking Financing

This 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

1. Before diving into car loan details, students will do a quick start activity to help John save for his dream car.
2. Understand the need for a car loan to achieve a car dream faster.
3. Learn about car loan-related terms such as down payment, principal amount, interest rate, etc.
4. Understand the difference between APR and interest rates.
5. Learn about factors affecting the APR, such as credit score, loan duration, etc.
6. Understand and analyze an amortization schedule

2. Car Loan Options and Risks

1. 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.
2. Understand the need to adjust their budget for a new car.
3. 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.
4. Read about the car loan pitfalls such as predatory lending tactics.
5. Use the internet to compare their two favorite cars in terms of the given parameters.
6. 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.