Auto Upkeep Basic Car Care, Maintenance, and Repair (2nd Edition) Chapter 1 - Introduction and How Cars Wor Auto Upkeep Basic Car Care, Maintenance, and Repair (2nd Edition) Chapter 3 Automotive Expenses Chapter 3 © 2007 Rolling Hills Publishing www.AutoUpkeep.com

Chapter 1 - Introduction and How Cars Wor Fuel for Thought What are some financial disadvantages of owning an automobile? Why is liability insurance commonly required? How can routine maintenance save you money? Chapter 3 © 2007 Rolling Hills Publishing www.AutoUpkeep.com

© 2007 Rolling Hills Publishing www.AutoUpkeep.com Objectives Upon completion of this chapter and activities, you will be able to: Identify automotive expenses. Identify ways to save money. Describe insurance coverage levels. Calculate specific automotive expenses. Chapter 3 © 2007 Rolling Hills Publishing www.AutoUpkeep.com

© 2007 Rolling Hills Publishing www.AutoUpkeep.com Car Payments Monthly payment is dependent on Amount financed Duration of loan Interest rate Chapter 3 © 2007 Rolling Hills Publishing www.AutoUpkeep.com

© 2007 Rolling Hills Publishing www.AutoUpkeep.com Insurance Deductible The amount you pay before the insurance applies You can decrease your insurance costs if you increase your deductible Chapter 3 © 2007 Rolling Hills Publishing www.AutoUpkeep.com

© 2007 Rolling Hills Publishing www.AutoUpkeep.com Insurance Liability Insurance The minimum policy commonly required. Covers claims to others that you cause. Chapter 3 © 2007 Rolling Hills Publishing www.AutoUpkeep.com

© 2007 Rolling Hills Publishing www.AutoUpkeep.com Insurance Collision and Comprehensive Covers the cost to repair your vehicle if you were at fault. Collision – auto accidents Comprehensive – natural disasters, vandalism, theft, fire, animal collisions Chapter 3 © 2007 Rolling Hills Publishing www.AutoUpkeep.com

© 2007 Rolling Hills Publishing www.AutoUpkeep.com Insurance Medical Payment, Personal Injury, and No-Fault Medical payment – covers you and your passengers Personal injury – covers lost wages No-fault – allows for expedited payment while insurance companies determine which party was liable Chapter 3 © 2007 Rolling Hills Publishing www.AutoUpkeep.com

© 2007 Rolling Hills Publishing www.AutoUpkeep.com Insurance Uninsured and Underinsured Uninsured – covers costs if someone injuries you and doesn’t have insurance Underinsured – covers costs if the other party’s policy doesn’t have enough coverage Umbrella Insurance Additional form of liability protection – goes above and beyond all other policies Chapter 3 © 2007 Rolling Hills Publishing www.AutoUpkeep.com

© 2007 Rolling Hills Publishing www.AutoUpkeep.com Insurance Rental, Towing, and Total Replacement Coverage Rental – pays rental car fees when your car is being repaired Towing – generally covers a set fee ($50 to $100) for a tow Replacement coverage – covers the replacement cost of vehicle, not the depreciated value Chapter 3 © 2007 Rolling Hills Publishing www.AutoUpkeep.com

© 2007 Rolling Hills Publishing www.AutoUpkeep.com Fuel Expenses Fuel economy varies greatly and it impacts your monthly costs The U.S. uses MPG, other countries use L/100 km Chapter 3 © 2007 Rolling Hills Publishing www.AutoUpkeep.com

© 2007 Rolling Hills Publishing www.AutoUpkeep.com Fuel Expenses Chapter 3 © 2007 Rolling Hills Publishing www.AutoUpkeep.com

License and Registration Sales tax Title fees License plate tags Chapter 3 © 2007 Rolling Hills Publishing www.AutoUpkeep.com

Maintenance and Repairs Routine Maintenance Oil changes, tune-ups, brake service, tires, battery, windshield wipers, timing belt, drive belts Unexpected Repairs Engine problems, drivetrain damage, transmission repairs Chapter 3 © 2007 Rolling Hills Publishing www.AutoUpkeep.com

© 2007 Rolling Hills Publishing www.AutoUpkeep.com Summary Automobiles are expensive to own. The costs to own a vehicle extends past the monthly payment. Plan for routine maintenance. Chapter 3 © 2007 Rolling Hills Publishing www.AutoUpkeep.com