1. Auto Upkeep Basic Car Care, Maintenance, and Repair (2nd Edition)
Chapter 1 - Introduction and How Cars Wor
Auto Upkeep Basic Car Care, Maintenance, and Repair (2nd Edition)
Chapter 3
Automotive Expenses
Chapter 3
© 2007 Rolling Hills Publishing

2. Chapter 1 - Introduction and How Cars Wor
Fuel for Thought
What are some financial disadvantages of owning an automobile?
Why is liability insurance commonly required?
How can routine maintenance save you money?
Chapter 3
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Objectives
Upon completion of this chapter and activities, you will be able to:
Identify automotive expenses.
Identify ways to save money.
Describe insurance coverage levels.
Calculate specific automotive expenses.
Chapter 3
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Car Payments
Monthly payment is dependent on
Amount financed
Duration of loan
Interest rate
Chapter 3
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Insurance
Deductible
The amount you pay before the insurance applies
You can decrease your insurance costs if you increase your deductible
Chapter 3
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Insurance
Liability Insurance
The minimum policy commonly required.
Covers claims to others that you cause.
Chapter 3
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Insurance
Collision and Comprehensive
Covers the cost to repair your vehicle if you were at fault.
Collision – auto accidents
Comprehensive – natural disasters, vandalism, theft, fire, animal collisions
Chapter 3
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Insurance
Medical Payment, Personal Injury, and No-Fault
Medical payment – covers you and your passengers
Personal injury – covers lost wages
No-fault – allows for expedited payment while insurance companies determine which party was liable
Chapter 3
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Insurance
Uninsured and Underinsured
Uninsured – covers costs if someone injuries you and doesn’t have insurance
Underinsured – covers costs if the other party’s policy doesn’t have enough coverage
Umbrella Insurance
Additional form of liability protection – goes above and beyond all other policies
Chapter 3
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10. © 2007 Rolling Hills Publishing www.AutoUpkeep.com
Insurance
Rental, Towing, and Total Replacement Coverage
Rental – pays rental car fees when your car is being repaired
Towing – generally covers a set fee ($50 to $100) for a tow
Replacement coverage – covers the replacement cost of vehicle, not the depreciated value
Chapter 3
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Fuel Expenses
Fuel economy varies greatly and it impacts your monthly costs
The U.S. uses MPG, other countries use L/100 km
Chapter 3
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Fuel Expenses
Chapter 3
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13. License and Registration
Sales tax
Title fees
License plate tags
Chapter 3
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14. Maintenance and Repairs
Routine Maintenance
Oil changes, tune-ups, brake service, tires, battery, windshield wipers, timing belt, drive belts
Unexpected Repairs
Engine problems, drivetrain damage, transmission repairs
Chapter 3
© 2007 Rolling Hills Publishing

15. © 2007 Rolling Hills Publishing www.AutoUpkeep.com
Summary
Automobiles are expensive to own.
The costs to own a vehicle extends past the monthly payment.
Plan for routine maintenance.
Chapter 3
© 2007 Rolling Hills Publishing