Transportation Choices

Focus Questions/Objectives 1.What is mass transit? 2.What is the most common form of private transportation? 3.What are some of the costs that come with owning a car?

Public Transportation Urban Intercity overseas

Urban Transportation Mass transit public transportation in an urban area Example NJ Transit train, bus, and light rail Pros Low cost Reduce traffic congestion as well as pollution More people can be moved

Commuters are people who must travel some distance between their homes and where they work Commuter service public transportation systems that bring people from the suburbs or nearby communities into cities Examples Subway, ferry, rail, bus

Transportation between Cities Intercity public transportation public transportation connecting cities, usually involving buses, trains, and airplanes Example Amtrak

Private Transportation Bicycles Motorcycles Scooters Car

Advantages of Motorcycles Fuel economy Freedom Quickness

Cars Ongoing expenses Interest on the auto loan Insurance Taxes and licenses Routine maintenance costs Repairs Fuel costs

Car ownership Needs and Costs Do you really need a car? Could you afford one? If so, what type of car can you afford?

Narrowing Your Choices Cars and Minivans Trucks Crossovers and SUVs Hybrid and EVs How much have you saved for a down payment, and how much can you afford to borrow?

Estimating Ownership Costs Initial purchase price Loan interest rates Auto insurance Taxes Upkeep costs

Research the Purchase Price of Used Cars Used Car dealers CarMax Auto shopper Craigslist Kelley Blue Book a widely used guide to used car values

Finance Costs of a Car Loan Car loans are available from banks, S&Ls, credit unions, finance companies, and from the dealership Use an online calculator to determine monthly payments

Car Insurance Call several insurance companies for estimates Might be less expensive getting insurance from same company as your parents Good student discount Year, Make, and Model Coverages

Taxes Sales tax Registration Tags

Maintenance Costs Preventative maintenance is automotive service that keeps a car running well and prevents major problems Includes engine tune ups, oil changes, replacing the battery and tires as needed Budget $1000 for maintenance costs for a small car

Fuel Costs Does the car require premium fuel? Miles per gallon (MPG) the average number of miles a car travels on one gallon of gasoline To estimate fuel costs, divide the number of miles you expect to drive by the expected MPG for the car you are thinking about. Then multiply that result by the average price per gallon

Totaling the Cost of Ownership Identify the expenses that occur at the time of sale – down payment, sales tax, license fee, etc. Divide your yearly estimates for the other expenses – car payments, insurance premiums, maintenance, fuel – by 12 to get the monthly cost for each Then, add up all the monthly costs to arrive at an overall estimated monthly cost of owning that particular car

Do you need a car? UBER Walking Public Transportation

Go to the website of one of your favorite auto makers, and build the car of your dreams. Then find out how much your monthly payments would be on the vehicle using the manufacturer's financing.

Assessment 1.What is the least expensive form of transportation? 2.What is mass transit? 3.What is the most common form of intercity transportation for long distances? 4.What two major factors should you weigh when you consider the decision to buy a car? 5.What is MPG and how does it influence the cost of owning a car?

1.What are the advantages and disadvantages of public transportation versus private transportation? 2.Would riding a bicycle meet most of your transportation needs? Why or why not? 3.If you determine that the car you want costs more than you can afford, what can you do to make owning that car a reality?