Total cost of ownership for a personal vehicle Compare the total cost of ownership for the purchase of two personal vehicles of your choice (use two that are currently for sale!). One vehicle should be a new car, while the second should be a used car that would serve as a reasonable substitute for the new car (i.e. don't compare a Civic and Tahoe... you don't have to compare the same exact vehicle model, but make sure they are in the same 'class"). What costs should you include? Maintenance repairs, motor vehicle taxes, insurance, fuel... plus anything else you believe is relevant. This is going to require extra research, including things such as miles per gallon calculations, typical maintenance/repair needs, average insurance costs, and local motor vehicle tax information. Also consider how long you expect your ownership period to be... will you drive the vehicles until they fall apart? Or will you trade it in after several years? Regardless of which you choose, you should estimate a salvage value at the end of your ownership period (again, this salvage value estimate will require some research into expected resale values). 3. Provide a description of vehicle #1, a new car. Calculate its total cost of ownership, being as detailed as possible in your costs. 2024 Chevrolet Malibu RS Vehicle Description Vehicle Price 28,000 Loan Terms 84 months A Year 5 10 Sales Tax 7% Down Payment -5000 Annual -4500 Payments Motor Vehicle 460 414 368 322 234.60 Fee 276. 93.20 Other Taxes & Fees Insurance Fuel Maintenance & Repairs Salvage Value TOTAL Note: All cash flows should be negative (costs), except for Salvage Value, which will be the only positive cash flow. Salvage Value will only occur ONE time, during the final year of ownership. Calculate the Net Present Value of this series of cash flows using a discount rate of 5%.4. Provide a description of vehicle #2, a comparable used car. Calculate its total cost of ownership, being as detailed as possible in your costs. 2020 Chevrolet Malibu LS Vehicle Description Vehicle Price 16,000 Loan Terms 60 months APR 8.62% Year 1 2 3 4 5 6 7 8 10 Sales Tax 7% Down Payment -2000 Annual -3480 Payments Motor Vehicle 220 198 176 154 132 Fee Other Taxes & Fees Insurance Fuel Maintenance & Repairs Salvage Value TOTAL Note: All cash flows should be negative (costs), except for Salvage Value, which will be the only positive cash flow. Salvage Value will only occur ONE time, during the final year of ownership. Calculate the Net Present Value of this series of cash flows using a discount rate of 5%