1. Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012

2. Taylor Meyer Selecting the Appropriate Vehicle

3. Recognize the Need Purpose School Job Parents had lent you a car Family New Car vs. Repair

4. The Car to Fit Your Lifestyle Work involving construction, farming, transporting materials, or driving over rough terrain Truck Jeep Land Rover Hummer

5. The Mid-Size Vehicle Consider if one has a large family, provides carpooling or other transportation, or if one is a small business owner Minivan SUV Full Size Van

6. The Car Ideal for the small family, business travel, the desire for a fast vehicle, look of the car, or better handling and gas mileage Sedan Luxury Car Sports Car

7. Fuel Efficiency Smart Car Fiat Hybrid Car SUV

8. Matthew Spanovich The Budget

9. Personal Finance Examine one’s personal financial position Calculate expenses Gasoline Unexpected car maintenance Utilize financial calculators to determine budget and price range

10. Taylor Meyer Researching the Market

11. Research Car in Mind Internet Research the Brand Websites Kelley Blue Book Consumer Reports Car and Drive Auto Zone CarFax

12. Research Print Source In-Depth Analysis Creditable Sources Quality Sources include: Consumer Report Car and Driver Motor Trend Auto Guide Sunday Newspaper

13. Other Forms of Research In-Person Research Dealerships’ Deals Feel out the Car Ask for the CarFax Recall History

14. Doug Martin Dealing with the Dealership

15. Those TV Commercials

16. Before the Dealership Research, Research, Research Kelley Blue Book Get financed before you shop

17. Walking into the Dealership You are the ultimate deal breaker Sticker price vs. Price you should pay NEVER impulse buy

18. Showroom Anxiety Bring someone with you “Forget” payment options Make the decision over multiple days, even weeks

19. The Test Drive Do not drive anything you are not considering buying Check all major systems Diagnostics check Overall convenience and comfort

20. The 4 Square

21. Trade Value Dealers will get you on the defensive Do not settle for anything less than what you want

22. Car Price Sticker price vs. Price you pay Understand you will be paying for more than the cost of the car

23. Down Payment Wiggle Room If you give, the salesman should as well

24. Monthly Payment Affordable Do not overlook a 10-20 dollar increase

25. The Contract

26. Matthew Spanovich Finding the Right Financing

27. Leasing vs. Buying Do you want to own the vehicle, or rent it? Do you want to upgrade your vehicle every few years?

28. Leasing Benefits: Down Payment and Monthly Payments Upgrading your car Bank Loans Drawbacks: Car Rental Mileage and other restrictions Higher insurance costs Closed-end vs. Open-end

29. Buying Benefits: Owning the vehicle Free of restrictions and penalties Insurance rates Drawbacks: Down-payment and monthly payments Risk of an upside-down loan

30. Dealership vs. Institution Financing Where can one find the best loan rates? Which method requires less hassle?

31. Dealership Financing Most simplistic approach Most expensive approach Back-End Business Scheme Dealerships receive big bonuses for signing buyers to higher interest rates The dealership may not have your best interest in mind

32. Institution Financing Shop around Start with one’s personal bank Other banks Other lenders Negotiate all the details, but do not sign Go to the dealership with this knowledge

33. Paying Cash Eliminate monthly payments Interest and finance fees Easier to sell the car later on Do not empty your savings Leave yourself a rainy day fund

34. Down-Payment and Loan Terms At least a 10% down-payment on an old car At least a 20% down-payment on newer cars Increasing your down-payment can significantly reduce the overall cost of the car

35. Rebate or Dealer Financing Dealers make you pick one of the two The low interest rates typically only apply to older, slower-moving models Generally, dealer rebates pay off more

36. Conclusion Any Questions?