1. + Buying a car Ms. Perez

2. + Bell ringer Pick and respond to one: What are the benefits of owning a car? What are some uses for a car? What are some reasons people would and would not own a car?

3. + Sticker Price Manufacturers list price IS the sticker price the FINAL price on the car?

4. + NO!!!! Example in a $20,000 dollar car, the invoice price (which is what the dealership pays) is about $15,000-$3000. What does this mean?

5. + Where can you buy a car?

6. + New-Car dealerships Used-car dealerships Private parties Newspapers, online, driving through town

7. + What are some things that you need to be careful of when you buy a car?

8. + On-lot inspection Engine leaks Look under car for leaks of the oil, coolant or transmission Exterior panels Rusk Interior panels For water damage/signs of leaking Tires Tire treads Having to get new tires isn’t a deal breaker BUT uneven wear could reveal a more serious car problem Odometer Tells you the mileage of the car

9. + http://www.youtube.com/watch?v=NHIfyhDzZ8o

10. + Pick the BEST Go to each station and pick out the best choice in cars.

11. + How can I afford a car?

12. + Loans and Financing Credit Unions Banks Car Dealerships Should you get a loan before or after you decide on a car?

13. + Payments Down payment The higher the down payment the _________ the monthly payments Monthly Payments How much you pay monthly Depends on the repayment period

14. + Price points Private sale price The price you could expect to get for this car if you sold it yourself to another person Trade-in price What the dealer would offer you in trade value Retail price What you would expect to pay for this car at a used dealership Why do you think that there are different price points?

15. + How do you find how much you should pay with your car?

16. + Kelley Blue Book Gives car value BASED ON Mileage Location Year Make Model Manufacturer’s Suggested Retail Price Dealers cost

17. + Given one of four ratings Excellent Looks new Excellent mechanical condition Never had any paint or body work

18. + Good Free of major defects No major mechanical issues Paint, body, and interior Little to no rust Most consumer owed vehicles fall into this category

19. + Fair Some mechanical or cosmetic defects Needs servicing but is reasonable Paint, body, and or interior need work from a professional Tires may need to be replaces Repairable rust repairs

20. + Poor Severe mechanical and/or medical cosmetic defects Poor running condition Problems that can’t be readily fixed Mileage is poor

21. + What do you think the most important factor to buying a car is?

22. + Financing a car How do you figure out the ACRUAL cost of a car? How do you figure out what your monthly payments are?

23. + Steps to figuring out the actual cost in financing a car Lets say the car costs $13,000 You get a loan that is an interest of 10.25% for 4.5 years What should you do first?

24. + Take the interest (10.25) and move the decimal over by 2. Example.1025 Take that number and multiple it by the car cost. Example.1025 X 13,000=1332.50, this is the COST of interest.

25. + Add the cost of interest to the original car cost. Example $14, 332.50, this number is the TRUE cost of your car. Then what?

26. + Next take the length in years multiplied by the # of months in a year. Example: 4.5X12=54-This is the # of payments you will make Take the TRUE cost of your car and divide by the # of payments you will make Example: 14,332.5/54=$265. 42, this is your monthly payment

27. + Table races The car cost on the lot is $20,000 dollars The loan is 7% interest for 5.5 years What is the TOTAL cost of the car? What are the monthly payments?

28. +.07 X 20,000= 14,000 14,000+20.000=21,400 5.5 X 12=66 21,400/66= 324.24

29. + You car costs $50.000 Your interest is 15% for 4 years What is the TOTAL cost of the car? What are the monthly payments?

30. +.15 X 50,000= 7,500 50,000 + 7,500= 57,500 4 X 12= 48 57,000/48= $1,197.92

31. + The car costs $75,000 dollars The interest rate is 8% for the next 7 years What is the actual cost of the car? What are the monthly payments?

32. +.07 X 75,000= 5250 75,000 + 5,250= $80,250 7 X 12=84 80,250/84= 955.34

33. + The car costs $10,000 dollars The interest rate is 10% for the next 3 years What is the total cost of the car? What are the monthly payments?

34. +.1 X 10,000= 1,000 1,000 + 10,000=11,000 3 X 12=36 11,000/36= 305.56

35. + The cost of the car is $45,000 The interest rate is 9% for the next 5 years What is the total cost of the car? What are the monthly payments?

36. + 45,000 X.09= 4,050 4,050 + 45,000= 49, 050 5 X 12= 60 49.050/60= 817.50

37. + TOTD: Does the length of the payments affect the price of the car? Why or why not?