Activity 1: Sophie's ideal car loan (Commerce)
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In the Moneystuff video, Nik had trouble keeping the car that he bought because he didn't check with REVS (NSW) or the Vehicle Securities Register (VIC). You can find out more about these checks under 'Car' in Just the facts or from the REVS website in NSW( www.revs.nsw.gov.au ) or the VicRoads website in Victoria (www.vicroads.vic.gov.au ).
Sophie had talked to Nik about his car buying problems. She tried to get all the information she could before buying a car. She checked out the Money Stuff website to read the car buying tips, she talked to friends and she shopped around. |
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Finally, Sophie found her ideal car at a local car dealer/trader. Her brother had looked over it with the inspection checklist (also printed off the Money Stuff website) and organised an inspection by a qualified mechanic. The next step was to apply for a loan to buy the car. Sophie decided to take a loan with the car dealer/trader's finance company.
1. ANSWER the questions below to find out what Sophie needs to know about credit contracts. Use the Car and Credit sections of the Money Stuff website to find the answers.
a. What should Sophie do before she decides to take out a loan with the car dealer/trader's finance company?
b. If she still wants to take out the loan with this company, what should she get before signing the credit contract?
c. The sales rep from the finance company has asked Sophie to provide a guarantor. Tye has agreed to go guarantor. What will this mean for Tye?
d. After Sophie has signed the credit contract, what should she get from the finance company?
e. Sophie has decided to take out comprehensive car insurance. What is comprehensive car insurance?
f. What are the disadvantages if Sophie adds the car insurance to the loan?
g. What will happen if Sophie loses her job and can't make the repayments?
Now you know some of the pitfalls involved in taking out a loan from the finance company, you may want to take your chances with the Money Stuff Challenge, on the Money Stuff website.
This activity can be found in the NSW Money Stuff Teacher resource book– Commerce page 37 .
Explore additional learning activities (which include extension and revision tasks) in the print resources section under Print resources - Victoria.
Linked Learning Outcomes - NSW
Core Part 1.2 Personal Finance
Focus: Students develop knowledge, understanding and skills that assist them to achieve financial independence by developing the ability to make informed judgements and to take effective decisions regarding the use and management of money.
Students learn about: Borrowing money.
Outcome LS.9:
Students learn about: Exercising care when accessing financial services.
Learning Outcomes – Victoria
Victorian Essential Learning Standards (VELS) Discipline-based learning
Domain: The Humanities - Economics
Dimension: Economic knowledge and understanding
Level 5
Students explain the nature of the economic problem and how economic choices involve trade-offs that have both immediate and future consequences.
Students make informed economic and consumer decisions, demonstrating the development of personal financial literacy.
Level 6
Students discuss and explain what it means to be an ethical consumer and producer and identify examples of ways values can affect the economic decision making of consumers, producers and governments.
Students explain the role and significance of savings and investments for individuals and for the economy, and demonstrate the skills required to successfully plan and manage personal finances.
Learning Outcomes - Western Australia
(Society & Environment)
ICP 4.1 Identifies the types of observations, data and sources appropriate to a topic and negotiates how they will be used to gain information.
NSS 4.3 Understands that people respond to change by making decisions about the production, distribution and exchange of goods and services.