1. Buying and Owning a Vehicle
Chapter 23
Buying and Owning a Vehicle

2. Steps in the Car-Buying Process
Identify your _________________
Determine what you can _______
Identify and _________ your choices
Decide whether to buy ____________
Decide how you will _____ for it
Check ___________ rates
_________ for available vehicles
_____________vehicles
Check the car’s __________
Get the vehicle __________ checked
Determine/negotiate a ______ ______

3. Steps in the Car-Buying Process
Identify your wants and needs
What ________ would you like
________ your wants
Be ___________ about your needs
Determine what you can afford
Monthly payments should be no more than _______of $ left after paying all regular monthly expenses
Budget for

4. Steps in the Car-Buying Process
Identify and Research Choices
Decide Whether to Buy New or Used
New:
Used

5. Steps in the Car-Buying Process
Decide how you will pay for it
Pre-approval –
Approval is good for ___________
Loan officer will determine how much the bank/credit union is willing to loan
Check Insurance Rates
Call you insurance agent for a preliminary quote

6. Steps in the Car-Buying Process
Search for Available Vehicles
Test Drive Vehicles
Check History of Used Vehicles
VIN –
Use VIN to check car’s history; can use _______; will list all previous owners, accidents, mileage at each sale

7. Steps in the Car-Buying Process
Get the Vehicle Checked Mechanically
For used vehicles:
Have a mechanic conduct a compression test, check the transmission, tires, brakes, etc.
Emissions test –
Ask the seller for records of maintenance, emissions tests, and inspections

8. Steps in the Car-Buying Process
Determine a Fair Price
Check __________________
Fair price based on year, mileage, condition of the car (for used cars)
Sticker price –
Invoice price –
Fair price is likely to be _____________above invoice price

9. Steps in the Car-Buying Process
Negotiate the Price
Make your initial offer _________ than the max price you’re willing to pay
Negotiate new car price separate from the __________
Don’t let your __________ show
Sell your old car rather than trading it in if the dealer doesn’t offer you a reasonable amount

10. Dealer Negotiation Techniques
“Need approval from a supervisor”
Using pressure
Low-balling – offering an unrealistically low price on your trade-in to make it look like they are cutting you a break when they give you more
High-balling – offering an unrealistically high price for your trade-in and then saying that the boss didn’t approve the amount
Pushing dealer add-ons –

11. Financing Your Car
Loans are offered in __, __, __, and ___ month terms
Longer terms mean you pay more in total
________ _______ offer the best deals
Compare interest rates
Can finance at most dealerships through finance companies (ex: GMAC)
Watch for ____________

12. Leasing a Car

13. Consumer Protection Warranty –
Warranties usually run out after stated ______________, which ever comes first
Lemon laws protect owners who bought “lemons”; allows you to get a new car or your money back

14. What is a “Lemon?” Lemon –
A) you’ve taken the car into the dealer for 4 unsuccessful attempts to repair the same defect OR
B) your car has been out for service for a total of at least 30 days

15. Consumer Protection FTC Used-Car Rule Federal Trade Commission
Requires used car dealers to inform consumers ahead of purchase about who will be responsible for paying for certain repairs

16. Cost of Operating a Car Gas and Oil Depreciation
Registration and Title
Maintenance and Repairs
Accessories

17. Cost of Operating a Car Gas and Oil Depreciation
Factors include age, mileage, mechanical condition, brand or style, color, etc.
Vintage/classic cars can appreciate in value

18. Cost of Operating a Car Registration and Title Maintenance and Repairs
Car Title –
Pay title fees and sales tax at time of sale
Pay registration fees yearly
Maintenance and Repairs

19. Extending the Life of Your Car
Maintain fluid levels
Perform routine maintenance
Keep car in a garage
Preserve exterior
Preserve interior
Follow wise driving habits