Chapter 16: Owning A Vehicle

Thursday, September 12th, 2013 Can You Pass This Driver’s Ed Quiz?

Steps To Purchase A Vehicle

Friday, September 13th, 2013 Homework Sheets Chapter 16 Homework Due 9/25/13 Legal Terms Page #357 Law Review #3,6,7,8,10 This Means You Must Read The Chapter!!!

Key Terms: Owning A Vehicle Explain What You Think Each Term Means

Term What You Think It Means… What It Means… Finance Charge  Fee for a loan to buy a car.   Buyer's Guide  Guide to buying a car Collision Insurance  Insurance that covers collisions No-Fault Insurance  Not your fault -> Insurance Pays Financial Responsibility Law  You have pay your debts (what you owe) Bodily Injury Liability Insurannce  IDK Uninsured Motorist Insurance Property Damage Liability Insurance  Insurance for property that may be damaged Used Car Rule  Lemmon Law Repossess  When they take your car back for a nonpayment Comprehensive Insurance  When the insurance understands you. Covers Everything Adhesion Contract  Contract you have to stick to

Newspaper Advertisements What are the important elements of this newspaper advertisement?

Monday, September 16th, 2013 What does it mean to finance a vehicle?

Laws of Ownership Cars = Goods (Products) Uniform Commercial Code Applies (UCC) Federal and State Consumer Protection Laws Personal, Family or Household purposes

Regulation Z Federal Law Says You MUST Disclose 2 Things Finance Charge Cost of the loan Annual Percentage Rate True interest rate of the loan

Rules of Financing Before You Sign, Know The Following: Exact Price You’re Paying Amount You’re Financing Finance Charge Apr Number And Amount Of Payments Total Sales Price (The Sum Of The Monthly Payments Plus The Down Payment)

Tuesday, September 17th, 2013 Take Out Your APR Sheet – Complete

Car Buying Terms Invoice Price Base Price Monroney Sticker Price Cost to the dealer + shipping Base Price Basic car, no frills Monroney Sticker Price Sticker required by law, includes MPG, Base Price, MSRP Dealer Price MSRP plus dealer markups

Wednesday, September 18th, 2013 In your notebook, explain why someone would want to lease a car.

Leasing A Vehicle Most Expensive Way To Acquire A Car Advantages: Low Down Payment and Small Monthly Payments Helpful for people with little savings In the end -> You have nothing!

Rules of Leasing Drive for only an agreed upon number of miles Turn it in at the end of the lease, pay fees, and walk away You can lease to buy Take advantage of warranties or recalls

Consumer Leasing Act Federal Law requiring businesses to tell you about all of the terms of a lease of personal property Regulates Advertisements This Is why we have “Fine Print”

Leasing Vs. Buying Leasing Buying Ownership Up-Front Costs Monthly Payments Early Termination Vehicle Return Future Value Mileage Excess Wear End of Term

Questions?

Thursday, September 19th, 2013 In your notebook, write 3 pros and 3 cons of purchasing a used car. BUYING A USED CAR PROS CONS

USED CAR RULE 1985: All used car dealers must place a sticker in the window called the Buyer’s Guide

Buyer’s Guide States the following: Whether the vehicle covers a warranty, if so, what warranty protection will be provided Whether the vehicle comes with no warranty “AS IS” or with implied warranties That you should ask to have the car inspected by your own mechanic before you buy That you should get all promises in writing What some of the major problems that occur in a car

Friday, September 20th, 2013 Define an implied warranty of merchantability in your notebook.

Dealer Gives an Implied warranty of merchantability AKA: The car is fit for the ordinary purpose for which cars are used. Usually, 30, 60, or 90 day warranty

Private Seller Does not sell a car with any implied warranties The seller must put any implied warranties in writing

Odometer Protection It is illegal to turn back the odometer! If seller is not sure, must state mileage unknown

Lemon Law Protects the purchaser against a defective car Differs between New and Used Cars

Monday, September 23rd, 2013 What did you find out about lemon laws? Discuss with your neighbors to check your answers.

Lemon Laws New Used How much cost to cover? How many miles under? How many dealer attempts to repair? Can a manufacturer deny liability? Can a contract void any of these laws? How many days must your car be out of service for a refund? How long must warranty be granted for?

Adhesion Contract Buyers must sign and adhere to the contract exactly as written in order to make the purchase. Unenforceable in court

Financial Responsibility Law Requires the vehicle owner to prove they can pay for damages or injury caused by an automobile accident Depositing money, bonds, securities Insurance!

Automobile Insurance A form of casualty insurance which protects against losses arising from chance, accident, or neglect. Most states require all drivers to carry automobile liability insurance.

Types of Insurance: Bodily Injury Liability Insurance Property Damage Liability Insurance Medical Payments Insurance Collision Insurance Uninsured Motorist Insurance Underinsured Motorist Insurance Comprehensive Insurance No-Fault Insurance

Bodily Injury Liability Applies When Insured’s Car Causes Injury, Sickness, Disease Or Death To Others If Insured Is Legally Responsible, Insurance Company Must Pay According To Policy Terms

Property Damage Liability insurance Protects The Insured Against Claims Resulting From Injury To Or Destruction Of The Property Of Others DOES NOT COVER Damage To The Insured’s Property

Medical Payments Insurance Policy Covers Medical, Surgical, Dental, And Related Expenses. Not Necessary To Prove Liability Covers Passengers And Guests Of Insured

Tuesday, September 24th, 2013 Take Out Your Automobile Insurance Chart

Collision Insurance Insured’s Car Pays For Damage When It Is Involved In A Collision With Another Vehicle Or Object. Paid For Losses, Regardless Of Fault Usually Contains A Deductible. You Pay A Certain $ Amount Before Insurance Company Pays

Uninsured Motorist Insurance Driver Purchases To Protect Himself Against Loss In An Accident Involving Someone Who Is Not Insured. Also Covers Hit-and-run

Underinsured Motorist insurance Protects you when another driver has insurance, but not enough to pay for any injuries

Comprehensive Insurance Provides Protection Against Loss Of Or Damage To The Insured’s Vehicle, Except Damage Caused By Collision Or Upset (Overturn) Applies To Fire, Theft, Windstorm, Vandalism

No-Fault Insurance NY Requires No-Fault Insured’s own insurance company covers losses suffered due to injury regardless of fault Meant to reduce number of lawsuits and speed up claims process DOES NOT COVER Compensation for: Pain and Suffering Mental Anguish Loss of Employment Loss of Life Wrongful Death Covers: Medical Expenses, Lost Income, Death Benefit

Wednesday, September 25th, 2013 Attach your homework to your yellow homework sheet. Turn in…

What to do if you get pulled over… The RIGHT way to handle a police stop...

Zero Tolerance The Zero Tolerance law applies to a person under age 21 who operates a motor vehicle BAC .02 - .07

Thursday, September 26th, 2013 Take A Handout Take Out Your Notes Complete

Friday, September 27th, 2013 Last chance for questions… Make sure you have a number 2 pencil!