This document provides guidance on choosing a vehicle and considerations for financing a purchase. It notes that financial planners recommend total monthly payments for a vehicle purchased through a loan should be no more than a certain percentage of one's net monthly income. It also outlines that taxes, including PST and GST, must be paid when purchasing from a dealer, while only PST applies for private sales in some provinces. Examples are provided to calculate taxes and total costs.

1. VEHICLES
CHOOSING A VEHICLE

2. Buying a vehicle is a MAJOR purchase and you
should make an informed decision based on:

3. FINANCIAL PLANNERS say that if you borrow money from a bank to purchase a
vehicle your total monthly payments for the vehicle should be NO MORE THAN
_______% of your net monthly income (NMI).
EX If your monthly net income is $1200 then what is the maximum monthly loan
payment you can afford, according to financial planners?

4. EX If you purchased a car and your monthly payments are going to be $600, what is
the minimum net monthly income that you need?

5. When you purchase a NEW or USED vehicle from a
DEALER you must pay BOTH TAXES, PST and
GST.
When you purchase a vehicle PRIVATELY you must
pay only pay PST, ONLY IN MB and BC.

6. EX A new Suburban is purchased from a dealer in MB for $45000. What are the
taxes? What is the total amount paid?
* We will use a GST of 7% because the textbook uses it from years ago.

7. EX A used Escalade is purchased privately in BC for $37,500. What are the taxes?
What is the total price?
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8. HOMEWORK
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