Discussion Questions Whats better NEW or USED? Compare the Advantages and Disadvantages of New/Used Cars –Come up with 3 Pros and 3 Cons for each
ANALYZE: NEW and USED Cars NEW CARS USED CARS PROSCONSPROSCONS
Places to Buy a Car From a dealer From a private party From an auction Others? –Internet? –Using the internet as a research tool
A used car from a dealer Consider costs, reliability, dealer reputation Read the "Buyer's Guide" sticker Consider the warranty and the service contract What to do if you have problems?
A used car from a private party No warranty Cost less than from a dealer Make sure you get the TITLE. A TITLE proves ownership of the car
5 Tips When Looking at Used Cars Check Body Condition Check Odometer Consider Mileage Get a Mechanic to Check the Car Get Registration and Title before you buy
Electrical Shock Absorbers Tires Brake Shoes and Lining Suspension Arm Steering Wheel Exhaust Pipe Engine Radiator Lights IDENTIYFING PROBLEM AREAS IN USED CARS Muffler
THINK: What should a test drive include? Drive on bumpy roads, freeways, etc Run in all gears Test brakes Start the car several times Listen for strange noises Park the car on a clean surface and check for drips Check lights, windows, radio,heater, A/C, etc.
A new car Read about new car features and prices Shop around Plan to negotiate price Learn the terms Consider the service contract
Service contracts Preventing problems Resolving disputes Comparing promises of warranties and service contracts
AUTO INSURANCE Why do you need it? –Required by Law –Good Idea in case you get in a wreck
How are insurance rates set? Age Sex Marital status Personal habits (e.g., smoking) Type of use Frequency of use Location Driving record deductible Type of car Value and age of car Type of coverage Type of car Grades
DEDUCTIBLES Usually either $500 or $250 Deductible –The amount you pay after a Claim is filed –example: You back into a tree and do $650 in damages. Your deductible is $250, then the insurance company pays you $400 Your deductible is $500, then the insurance company pays you $150
DEDUCTIBLES (cont) So why would you ever want a $500 deductible? Accident free discounts –You may not even want to file a claim. –Keeps insurance rates down.
Types of coverage Bodily injury liability Property damage liability Collision Comprehensive Medical payments Uninsured motorist Rental reimbursement Towing and labor
WHAT IS THE CAR WORTH? New Cars –MSRP Sticker Price / Retail Price –INVOICE PRICE The Price the Dealer Pays –Your goal? To get as close to the invoice price as you can!
Dealer Tricks Highballing Lowballing Talk to the Manager Bait and Switch The Waiting Game Good Guy / Bad Guy