1. Bell Ringer (Day 6) Write half page red to red about the following statement. Some movies are serious, designed to make the audience think. Other movies are designed primarily to amuse and entertain. Which type of movie do you prefer? Use specific reasons and examples to support your answer. Save these to be turned in with your test!

2. Reminder 1.Bring paper/pen/pencil and notebook 2.Electronics are for instructional use with permission 3.Dont forget to do daily quizzes on QUIA.COM 4.No Excuses why you dont take Quizzes 1-6 before test day!! (Quizzes are worth 30% of grade) 5.Attendance is MANDATORY!! (NO SLEEPING in class) 6.All notes can be found on Harrisonburgs staff website: http://staff.harrisonburg.k12.va.us/~tbutler/ 7.If you are NOT taking notes in class, please be quiet and ask to use the restroom at the end of class.

3. This is what you are trying to get at the end of class.. Harrisonburg High School H.C.P.S 36 x 03/06/2012 Your Name Here Green Card

4. Objectives: (Day 6) Students will learn the benefits and drawbacks of buying new vs. used cars. Students will learn about different places to purchase automobiles. Students will understand the different purchasing methods when it comes to buying a car. Students will understand the characteristics of an automobile warranty Related SOL: DE.19

5. How to Buy a Car

6. Buying A Car You have to decide whether or not you want to buy a new car or a used car, but…

7. Buying A Car …that choice is usually determined by how much you can afford…

8. Buying A Car A good estimate to how much your payment will be is to figure $20/month for every $1,000 financed. And thats for 5 years or 60 months

9. Buying A Car Examples: A $10,000 car would cost $200 a month A $20,000 car would cost $400 a month A $30,000 car would cost $600 a month A $40,000 car would cost $800 a month Thats EVERY MONTH for 60 months!! Oh, not including insurance, maintenance and dont forget gas!!

10. Buying A Car Now that you have an idea of what you can afford, What do you want??

11. The Benefits of buying new never been in a wreck never been smoked in hasnt had any past maintenance reduced future maintenance warranty coverage get the latest and greatest features better finance rates

12. The Drawbacks of buying new Higher costs High depreciation Decreased choices on car lot (but you can order a car) **A LE is the middle of line Camry**

13. The Benefits of buying used Lower costs certified pre- owned programs Avoiding Depreciation increased choices on lot

14. The Drawbacks of buying used You dont know history of car Do a lot more research –Ask friends, internet etc. Could have been smoked in Could have been wrecked Higher interest rates May buy as is

15. How to find the history of your car To find the history of yours, or any car, you can go online to many different websites such as CARFAX.com, cars.com, usedcars.com...etc. You can also ask the dealership for information regarding your car.

16. VIN: 1HGED3649KA081343 Year/Make/Model: 1989 HONDA CIVIC DX Body Style: Sedan 4 DR Engine Type: 1.5L L4 FI Manufactured In: UNITED STATES Search Results: 4 records found in our database IMPORTANT! The 4 records on this 1989 HONDA CIVIC DX will confirm a clean history or uncover potential problems. Find out by ordering the complete CARFAX Vehicle History Report. Example from CARFAX.com DO NOT WRITE THIS SLIDE!

17. Places to buy a car new/used car dealership websites person-to-person transactions. –print classifieds

18. Dealership or a Website Most of them are required to give a complete and accurate vehicle history report. –Doesnt mean that the salesperson wont lie to you

19. Person-to-Person Transactions You cant always trust person-to-person transactions –its easy to lie about the car wasnt ever in an accident when it could very easily have been a salvage vehicle.

20. What To Know Before You Go The first thing that you have to do before going out to buy a car is to check your credit history –Freecreditreport.com –or at your bank

21. FinancingMethods CashLeaseLoan

22. Cash The simplest way to pay for a car Avoid paying the interest charges

23. Loans Most people do not have enough cash to buy a car outright Loans are simply an agreement to lend money for the right to charge an interest rate on that money as it is paid back. Can be 2-7 years

24. Payment For Your Car Down payment- The amount you pay upfront to lower the amount you have to finance Annual Percentage Rate (APR)- The percentage of interest that you pay on your car per year Financing the balance- How to pay for what you still owe on the car youre buying

25. Leases Benefits Can be a great deal… A long-term rental agreement in which you pay for the right to use a car. You get a car that you couldn't afford to buy, and you have a low down payment, and slightly lower monthly payments.

26. Leases Drawbacks At the end of the lease term: –Drop the car off –you can purchase the car for the price determined at the beginning of the lease agreement. Cash Refinance balance May pay expensive penalties: –exceeding the mileage limits of the lease –Excessive wear and tear on the car –Ending the lease before it expires. –And while you lease the car, it is your legal responsibility.

27. Types of Car Warranties You may see these advertised: –36-months*/36,000-miles –60 months*/60,000 miles –7 years*/100,000 miles –10 years*/ 100,000 miles

28. Types of Car Warranties Basic Coverage –(all components other than normal wear and maintenance items). Power train Coverage –(engine, transmission/transaxle, front-wheel-drive system and rear-wheel drive).

29. VIN Numbers The VIN number is your Vehicle Identification Number. A VIN number is your cars serial number. Your cars VIN number is located in many places

30. Tips When Buying a Car Have the mechanic give the car a full inspection Avoid as is statements Have your finance and loan approvals ready before you even go to the dealership Don't discuss the possibility of a trade-in until you get the best possible price for your new car.

31. Any market adjustment prices Taxes- VA sales tax Dealer tax DMV fees Plate fees Title fees DMV processing fee Dealer processing fees Bump Stickers!! Hidden Costs

32. Wholesale (Dealer or Invoice) Price- What the dealership paid for the car Retail (MSRP) Price- What the dealership asks for the car Price Differences

33. How dealerships make money Sell over invoice Sell extra products Finance through the dealership Holdback is money paid to the dealer by the manufacturer when a car is sold.

34. THE END!