Presentation on theme: "BUYING AND OWNING A VEHICLE"— Presentation transcript:
1 BUYING AND OWNING A VEHICLE CHAPTER 16BUYING AND OWNING A VEHICLE
2 BUYING AND OWNING A VEHICLE CHAPTER 16BUYING AND OWNING A VEHICLE16.1 BUYING A VEHICLE16.2 INSURING A VEHICLE16.3 ENVIRONMENTAL CONCERNS
3 DO YOUR NEEDS REALLY JUSTIFY OWNING YOUR OWN CAR? BUYING A VEHICLEDO YOUR NEEDS REALLY JUSTIFY OWNING YOUR OWN CAR?
4 CAN YOU AFFORD IT? PURCHASE PRICE DEPRECIATION FINANCING Vehicles value steadily drops over timeFINANCINGShop around and look for best rateOPERATING COSTSFuel, oil, tires repairs, replacement parts, licensing fees, registration, insurance, taxes, etc…..
5 WHAT KIND SHOULD YOU BUY? What will it be used for?Passengers, cargo?How many miles?Keep it how long?
6 VEHICLE SIZESmaller, lighter = better gas mileage but does not offer as much protectionSmaller = easier to maneuverLarger = more comfortable but more costlyLarger = greater capacity for passengers
7 OTHER DECISIONS ENGINE TRANSMISSION OPTIONAL EQUIPTMENT Smaller more fuel efficientLarger more powerful for workingTRANSMISSIONMost automatic with overdriveManual last longer, harder to learnOPTIONAL EQUIPTMENTTechnological advancements means lots of toys!
8 LEASING Cheaper than buying When lease is over you: Return the vehicle and lease anotherPurchase the vehicle at reciprical valueReturn the vehicle with no obligations
9 BUYING USED VEHICLEBuying from private owner may cost less but no warrantyUsed car dealers usually have a better selectionSome now offer certified pre-owned warrantiesRead warranty carefullyHow much should you pay?Kelley’s blue book
10 CHOOSING A USED VEHICLE Make sure looks good and is in good mechanical conditionNeed to know if it was ever involved in collision beforeIf possible talk to previous owner
11 OUTSIDE AND INSIDE CHECKS Doors and locksGeneral appearanceFluid leaksEvidence of collision damageCondition of seatsLights and accessoriesMileagePedals & steeringSpare tire and jackHoses, belts, and fluidsBattery and cables
12 TEST DRIVEAlways test drive – make sure everything works and the car drives well.
13 HAVE VEHICLE INSPECTED Take it to a trusted mechanic and have them inspect it.
14 INSURING THE VEHICLE Every state has financial responsibility laws. Requires you to prove that you can pay for damage that you might cause
31 DISPOSAL OF VEHICLE PARTS AND FLUIDS Vehicle batteries, oil filters, oil, gasoline, transmission, fluid, brake fluid, and antifreeze are hazardous substances.Never dump or put these in the garbage.Service stations usually provide reclimation for these used products
32 MASS TRANSPORTATION CAR POOLING ALTERNATIVE FUEL HOW CAN YOU HELP?MASS TRANSPORTATIONCAR POOLINGALTERNATIVE FUEL
33 Mr. A’s InsuranceProperty Damage Liability 10,000Bodily Injury Liability 30,000 per person/60,000 MAXMedical Payments 30,000/60,000 MAXCollision 20,000/ 500 deductibleHow much will Mr. A’s Insurance pay for Ms. B’s Hospital Bills? How Much Will Mr. A pay?How much will Mr. A’s insurance pay for damages to Ms. B’s Car? How much will Mr. A pay?How much will insurance pay for Mr. A’s injuries? How much will Mr. A pay?How much will insurance pay for damages to Mr. A’s car? How much will Mr. A pay?Mrs. BHospital Bills $34,000Damage to Car $5,500Mr. A Caused a CollisionHospital Bills $22,000Damage to Car $6,000