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Purpose of this lesson: Learn how to assess a used car for possible purchase Learn how to assess a used car for possible purchase Learn how to determine a fair price for a used car and understand the negotiation and purchase process Come to an understanding of the resource tools available to purchase a new car at a fair price Come to an understanding of the resource tools available to purchase a new car at a fair price Precautions to take in the purchase process so as to not be taken advantage of. Buying a New / Used Car

-- After the completion of this material there are 23 review questions. These questions are also found the the Microsoft Word document titled: Buying a car review questions (it is suggested that you print out these questions and give a copy to your students so they can fill in the answers at the end of the lesson) Buying a New / Used Car

Since most first time buyers purchase pre-owned cars, we’ll consider used cars first Buying a New / Used Car

Thinking about your needs: What do you need it for? - Passenger and cargo considerations: Basic transportation for 4-5 passengers? OR Will you have cargo carrying needs as well? Buying a New / Used Car

Thinking about your needs: What do you need it for? What are advantages of smaller, lighter vehicles? What are advantages of smaller, lighter vehicles? - better gas mileage - easier to maneuver (parking) - less expensive price and lower insurance costs - Larger or smaller vehicle Buying a New / Used Car

Thinking about your needs: What do you need it for? What are disadvantages of smaller, lighter vehicles? What are disadvantages of smaller, lighter vehicles? - less protection in a collision - not as comfortable as larger cars - less passenger and cargo capacity - Larger or smaller vehicle Buying a New / Used Car

Thinking about your needs: What do you need it for? - greater protection in a collision - usually more comfortable - greater passenger and cargo capacity - more costly to operate and insure - Larger vehicles - greater protection in a collision - usually more comfortable - greater passenger and cargo capacity - more costly to operate and insure - greater protection in a collision - usually more comfortable - greater passenger and cargo capacity - more costly to operate and insure Buying a New / Used Car

Thinking about your needs: What do you need it for? - Will you be making short or long trips? - The expected mileage per year? - How long do you expect to keep the vehicle? - school, business, pleasure? Cindy’s Auto Parts What options would you consider a necessity? What options would you consider a necessity? What are some other factors concerning your needs? What are some other factors concerning your needs? What do you need it for? - school, business, pleasure? Buying a New / Used Car

Choosing a Used vehicle: - Usually the first thing you will observe about a car is it’s_________________ appearance. What are the basic exterior checks you should make as you walk around the vehicle the first time? What are the basic exterior checks you should make as you walk around the vehicle the first time? Check for dents, scratches, and rust, and differences in paint shades, do body panels line up properly? (what might this mean?) Examine tires for even tread wear, cracks in sidewalls Open and close doors, try locks, windows and trunk (trunk should be clean with a secure spare tire) Buying a New / Used Car

Choosing a Used vehicle: - Other checks will include getting down on your hands and knees to look____________the vehicle. What are the basic checks you should make beneath the vehicle? What are the basic checks you should make beneath the vehicle? Look for holes or heavy rust in exhaust pipes, muffler Most people (especially young people) do not have the expertise do not have the expertise to properly assess the condition of used vehicles …bring experienced help with you Most people (especially young people) do not have the expertise do not have the expertise to properly assess the condition of used vehicles …bring experienced help with you Check for fluid leakage on pavement (oil, transmission, coolant, brake fluid) Look for leakage by brake lines (near inside of tire) Buying a New / Used Car

Choosing a Used vehicle: -Besides the overall exterior appearance…what about the _________________ condition under the hood? Again, most people have limited knowledge of the mechanical aspects of the soundness of an engine …bring experienced help with you …but some things are obvious Again, most people have limited knowledge of the mechanical aspects of the soundness of an engine …bring experienced help with you …but some things are obvious Inspect the belts. (are they worn or frayed?) What are the engine checks that should be made? What are the engine checks that should be made? Buying a New / Used Car

Belts: are they worn or frayed?

Choosing a Used vehicle: -Besides the overall exterior appearance…what about the _________________ condition under the hood? What are the you checks should make? What are the you checks should make? Inspect the belts. (are they worn or frayed?) Check the oil dipstick to see if the oil is dirty (very dark) The electrical wires should be dark without cracks and hoses soft Does the oil have a burnt smell? Buying a New / Used Car …if so there could be a serious engine problem

The electrical wires should be dark and hoses soft Signs of oil leakage around manifold covers?

Choosing a Used vehicle: -Besides the overall exterior appearance…what about the _________________ condition under the hood? What are the you checks should make? What are the you checks should make? Again, most people have limited knowledge of the mechanical aspects of the soundness of an engine …bring experienced help with you…but some things are obvious Again, most people have limited knowledge of the mechanical aspects of the soundness of an engine …bring experienced help with you…but some things are obvious Other things... Inspect battery and cables for corrosion Buying a New / Used Car

Inspect battery and cables for corrosion Check coolant level and color (should be bright green – not brownish) Also check for any evidence of a collision (bent fan, damaged radiator, etc)

Choosing a Used vehicle: -Besides the overall exterior appearance…what about the _________________ condition under the hood? What should be checked after the engine starts? What should be checked after the engine starts? Are there loud knocking or pinging sounds? Is there excessive vibration (shaking of engine)? Are there leaks from hoses or radiator? Buying a New / Used Car

Choosing a Used vehicle: Check the pedals and steering wheel for excessive wear and notice mileage on odometer… Does it have a musty odor? If so vehicle may have been in a flood Are the seats comfortable and in good condition? Buying a New / Used Car

Choosing a Used vehicle: Check the seat adjuster (electric or mechanical) Do the mirror adjusters work properly Do seat belts work and retract properly Also, check carpet and interior for rips or holes What are some other non-electrical inside checks? What are some other non-electrical inside checks? Buying a New / Used Car Power windows and door locks

What are some inside electrical checks? What are some inside electrical checks? - First, when ignition is turned on, check all warning lights, which should then go off in a couple seconds. Buying a New / Used Car …if one stays on, what might this indicate? …a problem in that system

Buying a New / Used Car - Do all lights & accessories work? - Radio / tape / CD - Horn - Air conditioning / heat - Wipers - Headlights / tail lights / courtesy lights -Turn signals

Buying a New / Used Car So far you may like everything about the car but the test drive is critical to see if it will perform as it should. ALWAYS test drive a car before buying it. If the owner refuses, then look for a different car. Do not feel rushed, take your time. With radio off, what do you hear and feel? Listen for difficulties in starting or abnormal sounds while driving and turning. Drive on both smooth a bumpy roads to get a better assessment of the vehicle’s handling. Also listen for rattles. Does the vehicle hesitate when you quickly accelerate? It should accelerate and the automatic transmission should shift smoothly smoothly without hesitation from 0-40 mph.

Buying a New / Used Car Are the brakes in good condition? Brakes shouldn’t grab or pull to one side. Test with sudden stops on empty streets. Make three stops in a row. Step on pedal each time with same pressure observing if you stop in a straight line each time. If you hear a metal on metal sound the brakes are dangerously worn down and the repair can be substantial. Is the steering firm? There should not be much “play” in wheel. There should not be squeals, groans, creaks, or grinding noises. Let the car steer itself on a flat portion of road to check the alignment. It should not quickly drift to either side.

Buying a New / Used Car - How is the suspension? (on an off expressway ramp, how does the suspense handle the curve…tilt, hop, or sway?) - Be sure to check the exhaust: black smoke may mean oil burning, blue may mean gas burning. Accelerate quickly to test this. - Check the dashboard warning lights: oil, temperature and others for any malfunction. Failure of the vehicle to pass all the inspection and road tests should not necessarily disqualify it. Most used cars have some problems that need correction. These can often be negotiated into the final pricing. What one thing should still be done? What one thing should still be done?

Buying a New / Used Car - If still interested in purchasing the vehicle it wise to have the vehicle professionally inspected - It will be worth the time and money you spend and can save you a lot in the long term. You’ll get a fair assessment of the cost of needed repairs which will help you decide if you still want the vehicle. Next, its time to make a deal Next, its time to make a deal

Buying a New / Used Car A few other things before considering buying a used car Make sure to check the blue book price and yellow book NADA price. If over the price listed, try to negotiate a lower price. The owner / dealer wants to sell the vehicle, so if your counter offer price is reasonable, they will consider it. Don’t let the owner or dealer make you feel uncomfortable. Many dealers will try to pressure you, but remember, it’s ok to say no…the vehicle you need is probably somewhere else, and may be cheaper or in better condition. A couple other key points: If the seller is to make needed repairs, be sure it’s included in the written agreement. Don’t forget the owner’s manual.

Buying a New / Used Car Where can used vehicles be purchased? As is : no warranty (dealer / owner will not make repairs) Implied : varies from state to state Full : (bumper to bumper) excludes normal wear & tear Limited : you may have to pay labor Extended : you pay extra to extend the length coverage of the warranty

Buying a New / Used Car Where else can you obtain used vehicles - Certified used cars that pass inspections - They keep best trade-ins (auction off the rest) - Service Facilities available - Usually most expensive - May have warranty - Some have a bad reputation - Limited Service facilities New Car Dealerships Used Car Dealerships

Buying a New / Used Car Places To Check Prices, Get Information, & Buy KBB.com NHTSA.dot.gov edmunds.com carmax.com Private Party / Owner - Seldom repair or provide you with a warranty. - All paperwork must be handled between both parties. - Watch out for “curb-stoning”- where dealers sell cars secretly through themselves or other people, like spouses or friends. Illegal in most states. Repossession Auctions - If the person couldn’t afford to pay the loan payments. - You then pay for what is owed and the repossession cost.

Buying a New / Used Car New Car Dealerships Internet Companies Before going through a new car dealership or Internet company a lot of sensible buying information can be found using the Internet. Let’s just consider the basic steps to take

Buying a New / Used Car New Car Shopping Steps (the list below is the overall outline – each one will be examine separately) 1 ) Create a budget, obtain your credit report, get you financing in order. 2) Use free internet sites for determining dealer costs, car reviews, and pricing for your trade-in. 3) Visit dealers to check base price and options for pricing car. 4) Take information home, continue researching to determine the dealers true cost. 5) Go to the dealer to negotiate your offer and close the deal. 6) Generally offer the dealer 5% over their true cost. They are still making a profit and you will get a fair deal.

Buying a New / Used Car Review time…let’s see what you remember…

2) Your first walk around is to notice dents, scratches, differences in paint shades and if the body panels align properly. You’re looking to see if it has been in a ________ 4) Most people do not have the experience to fully assess the condition of a used vehicle. It is important to bring an ___________________ with you. 5) When inspecting under the hood, you are checking the condition of the ________ to see if they are worn or frayed. 1) Usually the first thing you will observe about a vehicle is its _______________ appearance. 3) The checks beneath include the condition of the exhaust system and any ____________you may notice on pavement.

11) You will also inspect around the radiator and connecting hoses for any _________ that may be present. 10) After starting the engine get out and listen for __________________ or __________sounds. 7) Also under the hood, the hoses should be ______and the electrical wires should be ________ without cracks in them. 9) When you check the coolant, it should be a brownish-red color. True or False: ________ 8) You should also look for signs of oil leakage around the _____________covers of the engine. 6) If when checking the oil, you notice its dark with a burnt smell, this could indicate a ____________problem.

17) You should also check the exhaust. Black smoke could indicate __________. 16) To check the alignment, let the car steer _______ on a _______portion of road. It should not quickly drift over. 13) If after you start the engine, you notice a warning light stays on, what does this mean? ______________________ 15) When testing the brakes a few times, the car should stop in a ___________line, not pulling to either side. 12) When inside the vehicle, if the pedals and steering wheel appear to be worn, this means the car has______________. 14) On the test drive the ___________________should shift smoothly without hesitation from 0-40 mph.

23) Generally, after researching everything, offer the dealer about ____% over the dealer cost for the vehicle. 22) An essential item to have in your possession before going to the dealer, is an updated ___________ as a tool for getting the best financing on the vehicle. 19) One of the final, most important steps before buying, is to have a ______________________ check it out for you. 21) When buying a new car, a lot of sensible buying information can be found by using the ____________. 20) If the seller is to make needed repairs, be sure it is included in the ____________agreement. 18) Failure of the vehicle to pass all the inspection and road test should not necessarily _______________ it. Most used cars have some problems that need correction.