1. Chapter 12 Transportation
Consumer Education
Chapter 12
Transportation

2. 12.1 Transportation Basics
Options for Transportation:
Bicycle:
Inexpensive. Used bikes: $25. Average cost for new bikes: $200-$300.
Make sure you purchase the right bike for the type of riding, usually to be used on street.
Inline Skates:
Inexpensive. $29-$150.
Learn how to use them properly and chose the right ones. Hard wheels last longer but don't grip as well. Try medium. Boots should fit more snuggly than street shoes.
Motorcycle:
Less expensive than a car (to buy and maintain) but still a bit pricy. Need motorcycle license. More likely to have a fatal injury than in a car. Try to take a training course if inexperienced.

3. Safety First! Bike Inline Skates Motorcycle Helmet Wrist Guards
Knee/Elbow Pads
Motorcycle
Full faced helmet

4. Public Transportation
(Bus, Streetcars, Subway, Trains, Taxis)
Cost: inexpensive. don't have to pay for gas and repairs. no parking fees. Convenience: goes to the most popular destinations. don't have to find a parking spot.
Speed: no traffic on subways and trains. some large cities have bus lanes to bypass traffic. –
Other Benefit: helps environment because it reduces air pollution.
When available, carpool, which is an arrangement to share private transportation. (usually people within your neighborhood)

5. 12.2 How to Choose a Car Should You Buy a Car?
Vehicle = 2nd most expensive purchase
Affordable car loan = 20% of take-home pay
Do not forget cost of insurance, gas, and maintenance
Can you afford it?

6. Fewer problems; warranty Warranty from dealer only
Factor
NEW
USED
Reliability
Fewer problems; warranty
Warranty from dealer only
Cost
Much more expensive. Lose value; have to sell for less
Loss of value = buy for less than it’s worth
Mileage
(Odometer-a measure of wear)
More repairs; most likely save in long run.

7. How to Choose a Car
Consider: styles, sizes, features, options, warranties, safety
Be realistic; fit life style
Prioritize
Features-characteristics of a particular model of car that offer benefits to the owner
Options- features that you can choose to include or not include on the car

8. How to Evaluate a Used Car
(Look/Check for:)
Mismatched paint (accident)
Rust (everywhere)
Strains on upholstery/carpeting and mold
Controls/lights
Fluid drips
No pulling
Brakes
Grinding/slipping of gears
Blue smoke from tailpipe = oil problem
Transmission fluid

9. 12.3 To Buy or Lease?
Buying on credit can result in lower interest rates
Watch ads and look for rebate offers (rebate- a partial refund of the purchase price) IMPORTANT: do the math because sometimes rebates will end up costing more.
Leasing (renting automobiles): Steps involved in Leasing.
1.) Negotiate the Price of the Car
2.) Know the Residual Value
3.) Down Payment and Security Deposit
4.) Financing
5.) Before You Return Your Lease Car
6.) Return Your Lease Car

10. Should You lease? You probably shouldn't lease if you...
can pay cash for the car you want
drive many miles in a year
keep cars for many years
are particularly hard on your car

11. After you negotiate a price…
financing and insurance is next. Financing can be done at your bank or with the dealer. Insurance comes in many common policies.
Accidental Death and Dismemberment: pays off the balance of your lease or loan if you accidentally die or are dismembered.
Gap Protection: pays the difference between what you owe and what your car is worth if it is totaled in an accident.
Extended Warranty Protection: extended the manufacturer's warranty on certain parts and services. *check out the company you would be buying it from*

12. Final Step: The Sales Contract Includes... Cash price
Principal amount financed
Down payment
Finance charge
Unpaid cash balance
Total cost of the loan
Insurance premiums
Payment schedule
Other costs
READ EVERYTHING BEFORE YOU SIGN

13. 12.4 The Car-Buying Process
Determine a Fair Price Check List
Know what you want
What you can afford
How to finance
Know invoice price
Sticker price is normally 9-11% above invoice
Trade-ins get less $
Invoice Price-amount the dealer paid to buy the car from the manufacturer
Sticker Price-price tag detailing prices of car’s options and the total price

14. The Buying Process Go to several dealers Ask experienced car buyers
Other options-No haggle dealers; internet
Shop towards end of the month (salespeople = more desperate)
Shop in colder climates (August/December)
Examine first, then drive

15. How to Negotiate the Deal
Remember: You’re in charge (don’t feel pressured or threatened)
Don’t tell them the price you can afford
First offer should be a little above invoice price (do not reveal target price)
Additional charges: sales tax, destination fee, license and registration, documentation fee
Read all Paperwork

16. 12.5 How to Maintain a Car Maintenance Every Car Needs Repair Services
Learn how it works (read owner’s manual)
Regularly check tires, oil, and other fluids
Tune-ups, brakes, and routine checks are important
Repair Services
Choose a repair shop by:
Getting recommendations
Checking them out
Building a relationship
When something is wrong with your car
Describe the problem
Get and estimate
Keep in mind guarantees
Check and pay for repairs
Save receipts
If you’re not satisfied
Talk with manager
Ask Better Business Bureau
Small claims court
Rebuilt/Reconditioned-used parts that were repaired or restored to working order

17. Lemon Check List Defect cannot be fixed after three or four attempts
Continued major problems that keep it in the shop for 30 days during the warranty period
Numerous major problems
Lemon Laws-protect consumers who buy defective new cars