1. Chapter 16: Owning A Vehicle

2. Thursday, September 12th, 2013
Can You Pass This Driver’s Ed Quiz?

3. Steps To Purchase A Vehicle

4. Friday, September 13th, 2013 Homework Sheets
Chapter 16 Homework Due 9/25/13
Legal Terms Page #357
Law Review #3,6,7,8,10
This Means You Must Read The Chapter!!!

5. Key Terms: Owning A Vehicle
Explain What You Think Each Term Means

6. Term
What You Think It Means…
What It Means…
Finance Charge
 Fee for a loan to buy a car.
Buyer's Guide
 Guide to buying a car
Collision Insurance
 Insurance that covers collisions
No-Fault Insurance
 Not your fault -> Insurance Pays
Financial Responsibility Law
 You have pay your debts (what you owe)
Bodily Injury Liability Insurannce
 IDK
Uninsured Motorist Insurance
Property Damage Liability Insurance
 Insurance for property that may be damaged
Used Car Rule
 Lemmon Law
Repossess
 When they take your car back for a nonpayment
Comprehensive Insurance
 When the insurance understands you. Covers Everything
Adhesion Contract
 Contract you have to stick to

7. Newspaper Advertisements
What are the important elements of this newspaper advertisement?

8. Monday, September 16th, 2013
What does it mean to finance a vehicle?

9. Laws of Ownership Cars = Goods (Products)
Uniform Commercial Code Applies (UCC)
Federal and State Consumer Protection Laws
Personal, Family or Household purposes

10. Regulation Z Federal Law Says You MUST Disclose 2 Things
Finance Charge
Cost of the loan
Annual Percentage Rate
True interest rate of the loan

11. Rules of Financing Before You Sign, Know The Following:
Exact Price You’re Paying
Amount You’re Financing
Finance Charge
Apr
Number And Amount Of Payments
Total Sales Price (The Sum Of The Monthly Payments Plus The Down Payment)

12. Tuesday, September 17th, 2013
Take Out Your APR Sheet – Complete

13. Car Buying Terms Invoice Price Base Price Monroney Sticker Price
Cost to the dealer + shipping
Base Price
Basic car, no frills
Monroney Sticker Price
Sticker required by law, includes MPG, Base Price, MSRP
Dealer Price
MSRP plus dealer markups

14. Wednesday, September 18th, 2013
In your notebook, explain why someone would want to lease a car.

15. Leasing A Vehicle Most Expensive Way To Acquire A Car
Advantages: Low Down Payment and Small Monthly Payments
Helpful for people with little savings
In the end -> You have nothing!

16. Rules of Leasing Drive for only an agreed upon number of miles
Turn it in at the end of the lease, pay fees, and walk away
You can lease to buy
Take advantage of warranties or recalls

17. Consumer Leasing Act
Federal Law requiring businesses to tell you about all of the terms of a lease of personal property
Regulates Advertisements
This Is why we have “Fine Print”

18. Leasing Vs. Buying Leasing Buying Ownership Up-Front Costs
Monthly Payments
Early Termination
Vehicle Return
Future Value
Mileage
Excess Wear
End of Term

19. Questions?

20. Thursday, September 19th, 2013
In your notebook, write 3 pros and 3 cons of purchasing a used car.
BUYING A USED CAR
PROS
CONS

21. USED CAR RULE
1985: All used car dealers must place a sticker in the window called the Buyer’s Guide

22. Buyer’s Guide States the following:
Whether the vehicle covers a warranty, if so, what warranty protection will be provided
Whether the vehicle comes with no warranty “AS IS” or with implied warranties
That you should ask to have the car inspected by your own mechanic before you buy
That you should get all promises in writing
What some of the major problems that occur in a car

23. Friday, September 20th, 2013
Define an implied warranty of merchantability in your notebook.

24. Dealer Gives an Implied warranty of merchantability
AKA: The car is fit for the ordinary purpose for which cars are used.
Usually, 30, 60, or 90 day warranty

25. Private Seller Does not sell a car with any implied warranties
The seller must put any implied warranties in writing

27. Odometer Protection It is illegal to turn back the odometer!
If seller is not sure, must state mileage unknown

28. Lemon Law Protects the purchaser against a defective car
Differs between New and Used Cars

29. Monday, September 23rd, 2013
What did you find out about lemon laws? Discuss with your neighbors to check your answers.

30. Lemon Laws New Used How much cost to cover? How many miles under?
How many dealer attempts to repair?
Can a manufacturer deny liability?
Can a contract void any of these laws?
How many days must your car be out of service for a refund?
How long must warranty be granted for?

31. Adhesion Contract
Buyers must sign and adhere to the contract exactly as written in order to make the purchase.
Unenforceable in court

32. Financial Responsibility Law
Requires the vehicle owner to prove they can pay for damages or injury caused by an automobile accident
Depositing money, bonds, securities
Insurance!

33. Automobile Insurance
A form of casualty insurance which protects against losses arising from chance, accident, or neglect.
Most states require all drivers to carry automobile liability insurance.

34. Types of Insurance: Bodily Injury Liability Insurance
Property Damage Liability Insurance
Medical Payments Insurance
Collision Insurance
Uninsured Motorist Insurance
Underinsured Motorist Insurance
Comprehensive Insurance
No-Fault Insurance

35. Bodily Injury Liability
Applies When Insured’s Car Causes
Injury, Sickness, Disease Or Death To Others
If Insured Is Legally Responsible, Insurance Company Must Pay According To Policy Terms

36. Property Damage Liability insurance
Protects The Insured Against Claims Resulting From Injury To Or Destruction Of The Property Of Others
DOES NOT COVER Damage To The Insured’s Property

37. Medical Payments Insurance
Policy Covers Medical, Surgical, Dental, And Related Expenses.
Not Necessary To Prove Liability
Covers Passengers And Guests Of Insured

38. Tuesday, September 24th, 2013
Take Out Your Automobile Insurance Chart

39. Collision Insurance Insured’s Car
Pays For Damage When It Is Involved In A Collision With Another Vehicle Or Object.
Paid For Losses, Regardless Of Fault
Usually Contains A Deductible. You Pay A Certain $ Amount Before Insurance Company Pays

40. Uninsured Motorist Insurance
Driver Purchases To Protect Himself Against Loss In An Accident Involving Someone Who Is Not Insured.
Also Covers Hit-and-run

41. Underinsured Motorist insurance
Protects you when another driver has insurance, but not enough to pay for any injuries

42. Comprehensive Insurance
Provides Protection Against Loss Of Or Damage To The Insured’s Vehicle, Except Damage Caused By Collision Or Upset (Overturn)
Applies To Fire, Theft, Windstorm, Vandalism

43. No-Fault Insurance NY Requires No-Fault
Insured’s own insurance company covers losses suffered due to injury regardless of fault
Meant to reduce number of lawsuits and speed up claims process
DOES NOT COVER Compensation for:
Pain and Suffering
Mental Anguish
Loss of Employment
Loss of Life
Wrongful Death
Covers: Medical Expenses, Lost Income, Death Benefit

44. Wednesday, September 25th, 2013
Attach your homework to your yellow homework sheet.
Turn in…

45. What to do if you get pulled over…
The RIGHT way to handle a police stop...

46. Zero Tolerance
The Zero Tolerance law applies to a person under age 21 who operates a motor vehicle
BAC

47. Thursday, September 26th, 2013 Take A Handout Take Out Your Notes
Complete

48. Friday, September 27th, 2013 Last chance for questions…
Make sure you have a number 2 pencil!