1. Buying a Car Managing Your Financial Future

2. Steps in the Car Buying Process 1. Identify your needs and wants What do you need to do with your car? Will you drive a lot of miles? What features would you like to have? You may have to trade off some of the wants for a lower price

3. Steps in the Car Buying Process 2. Determine what you can afford General Guideline : monthly payments should be no more than 20% of money left over after paying regular monthly expenses (rent, utilities, credit card payments etc) or you can utilize the 20/10 rule (total debt monthly payments should not be more than 10% of your monthly net income) Cost of maintaining car (gas, oil etc) Insurance

4. Steps in the Car Buying Process 3. Identify and Research Your Choices Compare features of the models against list of wants and needs Compare models with the same options List pros and cons of each model

5. Steps in the Car Buying Process 4. Decide whether to buy new or used Cost is a major factor in this decision New car loses much of its market value as soon as it is purchased. Used car may need more repairs.

6. Steps in the Car Buying Process 5. Get credit pre-approval Allows comparison of total costs of buying, including credit rates Fill out an application at credit union or bank

7. Steps in the Car Buying Process 6. Research Insurance Rates Call Insurance Agents and compare rates with at least three different companies

8. Steps in the Car Buying Process 7. Search for available vehicles Newspaper ads Internet Craigslist Autotrader Cars.com Dealer websites List cars that meet your specifications, features, prices

9. Steps in the Car Buying Process 8. Test Drive Each Vehicle Compare ride, handling, braking, features and costs Try all features Look for rust and mismatched paint which could indicate car has been in an accident

10. Steps in the Car Buying Process 9. Check the History of a Used Vehicle Each vehicle has a unique VIN (vehicle Identification number) that identifies the car VIN is on the dashboard in front of the driver and on all vehicle documents Request a CarFax report from the previous owner

11. Steps in the Car Buying Process 10. Get the vehicle checked mechanically Have the car checked out by a mechanic that you trust Vehicle Emission Test - test to verify that a vehicle meets the minimum clean- air standards Safety Inspections

12. Steps in the Car Buying Process 11. Determine a fair price New Car sticker price or MSRP (manufacturer’s suggested retail price) Invoice Price-price the dealer paid for the car Subtract any destination charges Make sure you understand and look up any charges that do not sound right

13. Steps in the Car Buying Process 12. Negotiate the price Stick to the facts Negotiate the price of the new car separately from the price of your trade in.

14. Steps in the Car Buying Process 13. Dealer Add-Ons High-priced, high profit dealer services that add little or no value to your car Tell the dealer you do not want these services on the car and remove them

15. FINANCING YOUR CAR 14. Financial Institutions Banks Credit Unions Online lenders Compare rates and terms

16. FINANCING YOUR CAR Car Dealers May offer better terms on particular models and at particular times of the year- sponsored by manufacturers or their financing agencies

17. LEASING A CAR It is a written agreement that allows use of the car for a specified time period and monthly payment Usually have option to buy the car at the end of the lease period Can lease more expensive car than could buy on credit Always have a car payment but a good way to always drive a new car

18. Consumer Protection for Car Buyers Warranty - states what manufacturer or dealer will do if car does not perform as it should Lemon Laws -for cars needing repairs; a lemon is a car with substantial defects that the manufacturer has been unable to fix after repeated attempts. 4 times to fix same problem in first year or 12,000 miles Out of service for at least 30 days in first year/12,000 miles

19. Consumer Protection for Car Buyers FTC Used Car Rule - requires used car dealers to inform consumers ahead of purchase about who will be responsible for paying for certain repairs if they occur after the sale Buyer’s Guide Sticker As is (buyer pays for all repairs) Warranty (dealer pays for some repairs for specific time)

20. Cost of Operating a Car Gas and Oil National Average: $3.68 per gallon of unleaded fuel Highest price in 6 years for early summer 14.45 ¢ per mile Depreciation http://www.edmunds.c om/car-buying/how- fast-does-my-new-car- lose-value- infographic.html http://www.edmunds.c om/car-buying/how- fast-does-my-new-car- lose-value- infographic.html

21. Cost of Operating a Car Title, Registration, Personal Property Tax, & Sales Tax Title (Proof you own the vehicle) 30 days to apply for a title (new car) $8.50 (title) $2.50 (processing fee) Registration (registering your vehicle with the state of Missouri) Pays for your license plate(s) and tags $3.50 for one year; $7.00 for two years) Personal Property Tax A tax which is based upon the value of personal property Sales Tax Paid at the time you apply for the title https://sa.dor.mo.gov/mv/stc/defa ult.aspx

22. Cost of Operating a Car Maintenance and Repairs Up 11.26% from 2012 (based on a 2013 statement from AAA) 4.97¢ per mile Accessories Window tinting Different wheels Audio System

23. Extending the Life of Your Car Maintain Fluid Levels Perform Routine Maintenance Keep Your Car in a Garage Preserve the Exterior Preserve the Interior Follow Wise Driving Habits