REVIEW WINNERS 100 points Tula Matt & Peter Worked Solo Charlie Savannah Kim

UNIT 5: MAJOR PURCHASES BUYING A VEHICLE

STEPS IN THE CAR BUYING PROCESS 1.Identify wants and needs How many miles do you typically drive? Do you haul anything? (camper, boat, trailer) Do you need to do any off-roading? What features would you like to have if you could afford them? 2.Determine what you can afford Monthly payment =no more than 20% of money after ALL OTHER EXPENSES are paid Other considerations…gas, car insurance, and annual license fee ($75)

STEPS IN THE CAR BUYING PROCESS 3.Identify and research your choices Carsoup Edmunds Autotrader 4.Decide: new or used? AdvantagesDisadvantages New Warranty Looks nice Expensive Depreciation UsedLess expensiveMaintenance

Ferrari makes a maximum of ____ cars every day. 14

STEPS IN THE CAR BUYING PROCESS 5.Get Credit Pre-approval How much $ are you QUALIFIED to borrow? To get pre-approval… Visit a bank/credit union Loan officer will decide if and how much they will lend you 6.Search for AVAILABLE vehicles in your price range 7.Test drive each vehicle Compare ride, handling, braking, features, and cost Try the radio, air conditioning, heat, and other features Listen to the engine

STEPS IN THE CAR BUYING PROCESS 8.Show me the CARFAX! Locate the Vehicle Identification Number (VIN) on the dashboard on the driver’s side of the car Cost Initial (vague) report=free 1 detailed report=$ detailed reports=$49.99 Unlimited reports for a year=$ Get the vehicle checked out mechanically Cost=approx. $150 Brakes, tires

An airbag takes only ____ milliseconds to inflate after an accident. 40

STEPS IN THE CAR BUYING PROCESS 10.Determine a fair price Kelly Blue Book Find the estimated fair price For a new car, the sticker price, or MSRP is shown on the tag in the car’s window MSRP=Manufacturer’s Suggested Retail Price The fair price is between the invoice price (what the dealer paid for it) and the sticker price 11.Negotiate price High pressure Stick to facts & don’t reveal emotions to seller

FINANCING Cash Loan through Car Dealership Loan through Bank/Credit Union

The world’s longest traffic jam was between Paris and Lyon on the French Autoroute in It was ___ miles long. 110

LEASING Make monthly payments Give up car at end of a specified time period End of term, you have the option of purchasing the vehicle Why would somebody want to lease? Can lease a nice vehicle that you wouldn’t be able to purchase outright

LEASING

___% of car owners admit to singing behind the wheel. 90

VEHICLES AND THE LAW Consumer Protection for car buyers Warranty: written statement about a product’s qualities or performance that seller assures the buyer are true Lemon Laws Lemon: a car with substantial defects that the manufacturer has been unable to fix after repeated attempts. It must be… First year of ownership or under 12,000 miles Taken car into dealership 4 times for the SAME defect within that year Out of service for 30 days Allows you to get a new car or your money back

VEHICLES AND THE LAW FTC (Federal Trade Commission) Used Car Rule Used Car Dealers MUST inform customer who will pay for certain repairs “Buyer’s Guide” Sticker “As Is” box checked=BUYER pays for all repairs “Warranty” box checked=DEALER pays for repairs to the items listed Good only for a limited time!

CAR CHALLENGE Dream CarMoney is NO concern Happy CarRealistic Vehicle Practical CarBest Value/Investment Create a collage including… 1.Picture of each car 2.Price of each car 3.3 Advantages of owning each car 4.3 Disadvantages of owning each car 30 points

WISCONSIN INSURANCE LAW Wisconsin drivers and owners of motor vehicles are required to show proof of insurance by law enforcement at… Traffic stops Accidents

WISCONSIN INSURANCE LAW Fines associated with vehicle insurance… Up to $500 for operating without insurance Up to $10 for no proof of insurance at a traffic stop/accident Up to $5000 for offering fraudulent proof of insurance

INSURANCE & VEHICLE VALUES Part 1: Insurance Go to Progressive enter information for a quote Print the quote Answer questions on worksheet Part 2: Value of Your Vehicle Go to Kelley Blue Book Get information about Trade-in & Private Party Values Answer questions on worksheet