Presentation on theme: "Purchasing a Vehicle Can you name 7 places that you can purchase a car from? 1.By Owner 2.Used car dealership 3.New Car Dealership 4.Auction 5.Rent-A."— Presentation transcript:
Purchasing a Vehicle Can you name 7 places that you can purchase a car from? 1.By Owner 2.Used car dealership 3.New Car Dealership 4.Auction 5.Rent-A Car 6.Bank 7.E-bay Rav 4
Car Max/ Vehix.com Used car dealer No bargaining may have warranty By Owner Drive it first Less expensive when you drive away, you are responsible usually no warranty New Car Dealer Most Expensive Go by reputation Most reliable Bicker price warranty Auction Cheapest Gov. Agencies Police No warranty Rent-A-Car Hertz Avis Alamo Been Serviced properly Bank People who can’t pay for the car have it repossessed vehix.com
NewNew vs. Used Cars What happens when you drive a car off the lot? What happens when you drive a new car off the lot? Depreciation- Depreciation- What is this? The value of the car drops the minute you drive off the lot The value of the car drops the minute you drive off the lot Depreciates 15-20% each year Depreciates 15-20% each year Calculate the depreciation of a $12,000 car after 1 year Calculate the depreciation of a $12,000 car after 1 year $ 12,000 $12,000 $ 12,000 $12,000 X.15 -$1,800 $1,800 Value $10,200 $1,800 Value $10,200 When buying a car, how can you find out what it is worth? When buying a used car, how can you find out what it is worth? Classifieds Classifieds Auto Trader Magazines Auto Trader Magazines Kelly Blue Book-average market value of a car- depends on the condition of the car (excellent/good/fair/poor) Kelly Blue Book-average market value of a car- depends on the condition of the car (excellent/good/fair/poor) Kelley Blue Book - New Car Pricing and Used Car Values Kelley Blue Book - New Car Pricing and Used Car Values
Now you’ve decided on buying a New or Used car, you’ve decided on where to shop for the car, Now what are you looking for in a car? Needs- Standard Equipment Consider size of vehicle Consider size of vehicle Manual or Automatic Manual or Automatic Fuel Economy**** Fuel Economy**** Safety Standards: crash tests Safety Standards: crash testscrash testscrash tests Wants- Optional Features/Specifications/ Technical Specs HD Radio/MP3 accessories HD Radio/MP3 accessories sun roof sun roof leather seats leather seats GPS GPS Remote entry/starter Remote entry/starter
Price of a Vehicle New Cars Invoice Price: How much the dealer pays to get the car MSRP (Manufacturers Suggested Retail Price): How much the dealer will sell the car to you for. Usually higher than the invoice price. Used Cars Trade in Value: Trade-in Value is what consumers can expect to receive from a dealer for a trade-in vehicle. Suggested Retail Value: Representative of dealers' asking prices and is the starting point for negotiation between a consumer and a dealer.
FACTS ABOUT FUEL EFFICIENCY CONTROL YOUR SPEED PROPER TIRE INFLATION PROPER TIRE INFLATION PROPER TIRE INFLATION FOR EVERY 5 MPH INCREASE IN SPEED YOUR CAR GETS 1.5 FEWER MILES PER GALLON COAST TO A STOP AND MODERATELY ACCELERATE VEHICLE DESIGN-MORE STREAMLINED SMALLER ENGINES
Hybrid Cars- What are they? Gas and Electric Car Better gas mileage in CITY driving Recharge during braking and coasting $5,000 - $10,000 thousand more than regular cars
CALCULATING MILES PER GALLON (mpg) 1. Fill up your tank 2. Record the ODOMETER reading 3. Drive until you have ½ a tank of fuel 4. Refill tank and record ODOMETER reading and # of gallons used to fill tank 5. Subtract first odometer reading from the second reading and divide by the number of gallons needed to fill the tank 6. The result is the number of miles per gallon
MPG ODOMETER READING #1: 12, 889 MILES ODOMETER READING #2: 13,101 MILES # OF GALLONS NEEDED TO FILL: 12 gal 13, 101 13, 101 -12, 889 212 MILES DRIVEN 212 miles / 12 gal = 17.66 mpg
How many (MPG) does this Grand Am get? 1 st odometer reading = 45,608 miles 2 nd odometer reading =45,828 miles # gallons to fill tank = 10 gallons ______________mpg How many (MPG) does this Dodge Durango truck get? 1 st odometer reading = 45, 608 2 nd odometer reading = 45,752 # of gallons to fill tank = 12 gallons ______________mpg Which automobile is more fuel efficient?____________________ Why do you think this is true? 22 12 Grand AM
Responsibilities of Maintaining Your Car Monthly Expenses Monthly Car Payment Monthly Car Payment Gas Gas Insurance Premium Insurance Premium IPass IPass Parking Parking Yearly Expenses Village Sticker Village Sticker License Plate Renewal Sticker License Plate Renewal Sticker Oil Change- 4x year Oil Change- 4x year Tires, brakes, light bulbs, tune ups, etc. Tires, brakes, light bulbs, tune ups, etc.
Buying a Car Project 10 points Use Yahoo Autos, MSN autos, Vehix.com, carmax.com to research a NEW car Research: – price – safety – fuel efficiency – optional features – Dealerships Find the trade in value and the suggested retail value of a used car using the online Kelley Blue Book www.kbb.com MPG – fuel efficiency equations Provide a picture of the vehicle CR A- DUE 12/8 CR B – Due 12/9
2010 Dodge Challenger RT 22 MPG City 14 PKG: 22X ABS Brakes Air Conditioning AM/FM Stereo Automatic Transmission CD Audio Cruise Control Leather Seats Overhead Airbags Power Locks Power Mirrors Power Windows Rear Defroster Satellite Radio Ready Side Airbags Traction Control MPG HWY 22 MPG City 14 Transmission=Automatic Drive2WD Engine6.1L engine Cylinders8 cylinders TransmissionAutomatic Drive2WD Engine6.1L engine Cylinders8 cylinders $ $41,657.00 Invoice Fair Purchase Price | Add options to update your priceAdd options to update your price $43,294.00