Presentation on theme: "Purchasing a Car: Lesson 1 Coach Markus. Essential Questions 1. Should I buy a new car or a used car? 2. Where can I find the best car loan to finance."— Presentation transcript:
Objectives Identify costs of owning and operating a car. Identify factors to consider when shopping for a car. Identify factors to consider when shopping for a car loan and car insurance. Determine how much money can safely be spent each month to own, operate, and maintain a car within a given budget.
Costs of owning a car Ownership: Purchase Price Sales Tax Registration, title, and license Financing costs Insurance
Costs of owning a car Operational: Gasoline Oil and other fluids Tires Maintenance and repairs Parking and tolls
Decisions, Decisions When purchasing a car, many decisions will need to be taken into consideration.
Quality What level of quality do I want? What level of quality do I need?
Before you BUY Try to sell your old car yourself. Why? - Dealers give better deals with no trade-in - Dealers will not give you as much for your car
Before you BUY Consider if you need an optional (extended) service contract.
Car buying realities - How much can I AFFORD to spend? - Is there a shop nearby that works on my car? - Are parts readily available for my car? - What kind of financing will I qualify for? - Do I know how to read a buyers guide sticker?
How many prices are there?? List price/Retail price/Sticker price: Asking price by the dealer. Sometimes negotiable. Invoice Price/Dealer Invoice price: The price the dealer paid the manufacturer for the car. Base Price: The price of the car before options. Book Value: Pricing book prices (KBB is most popular)
Warranties What is a warranty? A written guarantee to make needed repairs on a car within a limited period of time.
Warranties As-is (no warranty): If you buy a car and have problems with it, you must pay for this yourself. On most used cars, unless the dealership has a limited warranty plan.
Warranties Dealer warranties: Offered and specifically written by the dealer. Terms and conditions can vary greatly, so it is useful to compare warranty terms on similar cars or negotiate warranty coverage.
Warranties Manufacturers warranties (unexpired): The manufacturers warranty can sometimes be transferred to the new owner. Manufacturers warranties usually are for 36,000 miles or 3 years, whichever comes first. Some are more, depending on brand.
Warranties Service contract (Extended Warranty): Goes into effect after the manufacturers warranty expires. Designed to avoid costly repairs as a motor vehicle gets older.