Chapter 12 Transportation Consumer Education Chapter 12 Transportation

12.1 Transportation Basics Options for Transportation: Bicycle: Inexpensive. Used bikes: $25. Average cost for new bikes: $200-$300. Make sure you purchase the right bike for the type of riding, usually to be used on street. Inline Skates: Inexpensive. $29-$150. Learn how to use them properly and chose the right ones. Hard wheels last longer but don't grip as well. Try medium. Boots should fit more snuggly than street shoes. Motorcycle: Less expensive than a car (to buy and maintain) but still a bit pricy. Need motorcycle license. More likely to have a fatal injury than in a car. Try to take a training course if inexperienced.

Safety First! Bike Inline Skates Motorcycle Helmet Wrist Guards Knee/Elbow Pads Motorcycle Full faced helmet

Public Transportation (Bus, Streetcars, Subway, Trains, Taxis) Cost: inexpensive. don't have to pay for gas and repairs. no parking fees. Convenience: goes to the most popular destinations. don't have to find a parking spot. Speed: no traffic on subways and trains. some large cities have bus lanes to bypass traffic. – Other Benefit: helps environment because it reduces air pollution. When available, carpool, which is an arrangement to share private transportation. (usually people within your neighborhood)

12.2 How to Choose a Car Should You Buy a Car? Vehicle = 2nd most expensive purchase Affordable car loan = 20% of take-home pay Do not forget cost of insurance, gas, and maintenance Can you afford it?

Fewer problems; warranty Warranty from dealer only Factor NEW USED Reliability Fewer problems; warranty Warranty from dealer only Cost Much more expensive. Lose value; have to sell for less Loss of value = buy for less than it’s worth Mileage (Odometer-a measure of wear) More repairs; most likely save in long run.

How to Choose a Car Consider: styles, sizes, features, options, warranties, safety Be realistic; fit life style Prioritize Features-characteristics of a particular model of car that offer benefits to the owner Options- features that you can choose to include or not include on the car

How to Evaluate a Used Car (Look/Check for:) Mismatched paint (accident) Rust (everywhere) Strains on upholstery/carpeting and mold Controls/lights Fluid drips No pulling Brakes Grinding/slipping of gears Blue smoke from tailpipe = oil problem Transmission fluid

12.3 To Buy or Lease? Buying on credit can result in lower interest rates Watch ads and look for rebate offers (rebate- a partial refund of the purchase price) IMPORTANT: do the math because sometimes rebates will end up costing more. Leasing (renting automobiles): Steps involved in Leasing. 1.) Negotiate the Price of the Car 2.) Know the Residual Value 3.) Down Payment and Security Deposit 4.) Financing 5.) Before You Return Your Lease Car 6.) Return Your Lease Car

Should You lease? You probably shouldn't lease if you... can pay cash for the car you want drive many miles in a year keep cars for many years are particularly hard on your car

After you negotiate a price… financing and insurance is next. Financing can be done at your bank or with the dealer. Insurance comes in many common policies. Accidental Death and Dismemberment: pays off the balance of your lease or loan if you accidentally die or are dismembered. Gap Protection: pays the difference between what you owe and what your car is worth if it is totaled in an accident. Extended Warranty Protection: extended the manufacturer's warranty on certain parts and services. *check out the company you would be buying it from*

Final Step: The Sales Contract Includes... Cash price Principal amount financed Down payment Finance charge Unpaid cash balance Total cost of the loan Insurance premiums Payment schedule Other costs READ EVERYTHING BEFORE YOU SIGN

12.4 The Car-Buying Process Determine a Fair -- Price Check List Know what you want What you can afford How to finance Know invoice price Sticker price is normally 9-11% above invoice Trade-ins get less $ Invoice Price-amount the dealer paid to buy the car from the manufacturer Sticker Price-price tag detailing prices of car’s options and the total price

The Buying Process Go to several dealers Ask experienced car buyers Other options-No haggle dealers; internet Shop towards end of the month (salespeople = more desperate) Shop in colder climates (August/December) Examine first, then drive

How to Negotiate the Deal Remember: You’re in charge (don’t feel pressured or threatened) Don’t tell them the price you can afford First offer should be a little above invoice price (do not reveal target price) Additional charges: sales tax, destination fee, license and registration, documentation fee Read all Paperwork

12.5 How to Maintain a Car Maintenance Every Car Needs Repair Services Learn how it works (read owner’s manual) Regularly check tires, oil, and other fluids Tune-ups, brakes, and routine checks are important Repair Services Choose a repair shop by: Getting recommendations Checking them out Building a relationship When something is wrong with your car Describe the problem Get and estimate Keep in mind guarantees Check and pay for repairs Save receipts If you’re not satisfied Talk with manager Ask Better Business Bureau Small claims court Rebuilt/Reconditioned-used parts that were repaired or restored to working order

Lemon Check List Defect cannot be fixed after three or four attempts Continued major problems that keep it in the shop for 30 days during the warranty period Numerous major problems Lemon Laws-protect consumers who buy defective new cars