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MAJOR LIFE PURCHASES Buying a Car. Why Buy a Car? Freedom Transportation Increases your options: Where you live Where you work.

Published byAbel Gilbert Modified over 9 years ago

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Presentation on theme: "MAJOR LIFE PURCHASES Buying a Car. Why Buy a Car? Freedom Transportation Increases your options: Where you live Where you work."— Presentation transcript:

1 MAJOR LIFE PURCHASES Buying a Car

2 Why Buy a Car? Freedom Transportation Increases your options: Where you live Where you work

3 What Does it Take to Buy a Car? Research Decision making skills Negotiation skills Patience Requires knowledge of consumer rights Maintenance Costs & Knowledge of how to maintain

4 RESEARCH Step 1

5 Pricing Sites –VS- Auto Manufacturer Sites Manufacturer NameWebsite Daimler Chryslerwww.daimlerchrysler.com Ford Motor Companywww.ford.com General Motorswww.gm.com Honda Motor Companywww.honda.com Hyundai Motor Companywww.hyundai-motor.com Isuzuwww.isuzu.com Kia Motors Americawww.kia.com Mitsubishi Motorswww.mitsubishi.com Toyota Motor Corporationwww.toyota.com Volkswagenwww.vw.com NameWebsite AutoTraderwww.autotrader.com Edmundswww.edmunds.com IntelliChoicewww.intellichoice.com Kelley Blue Bookwww.kbb.com National Automobile Dealership Associationwww.nada.com VMR (used cars only)www.vmrintl.com Good for Comparing prices. Main purpose is to promote their own vehicles

6 Fuel Economy Safety Tests and rates off- set frontal crashes: Good Acceptable Marginal Poor Tests and rates full-frontal & side impact crashes on a 5-star scale : 5-star rating is the safest(*****) www.fueleconomy.gov www.hwysafety.com Safety www.safecar.gov Lists MPG for: City, Highway, and combined Compare MPG for 4 models side by side

7 © 2005 Consumer Jungle Consumer Reports Consumer Reports: Vehicle Ratings Model Reviews Reliability Ratings Fuel Economy Safety Ratings Subscribe online 1 month ($5) or 1 year ($26) Last 4 years of data

8 © 2005 Consumer Jungle Cool Cars = Costly Repairs Average Repair Bill is $3,912 Repairs Costs have increased 60% since 1992 2005 BMW 5 Series Adaptive headlight $2,035 Parking Sensor $372 Adaptive Cruise Sensor $2,222

9 MAKE A DECISION Step 2

10 © 2005 Consumer Jungle Where to Purchase a Car Step 2: Check out the cars Dealerships Take your Time: only look at 3 -4 cars a day. If you are tired at the end of the day, and just want to get it over with, a salesman will be able to sell you anything. Other Sources: Private-Party Sellers Internet

11 © 2005 Consumer Jungle Test Drive Normal Travel Routes Listen for noises Drive variety of roads: Windy Bumpy Steep Drive for at least 10 minutes and 10 miles

12 NEGOTIATE Step 3

13 Get Pre-Approval Know how much you can spend Choose the best value Shop for a car loan – the dealer is not usually the best place for financing. The dealership will treat you like gold if you already have a pre-approval….it means they can move a deal quickly.

14 Prepare to Deal Decide on your bottom line Negotiate – avoid emotions/stick to facts Avoid High-balls and Low-balls Watch dealer add ons

15 © 2005 Consumer Jungle Making an Offer Armed with research, you can make a firm and reasonable offer to the dealer. A reasonable offer is 2% - 8% above the dealer’s cost. Get the price in writing. Calculating a Reasonable Offer Dealer Invoice Price - Factory-to-Dealer Holdbacks - Factory-to-Dealer Incentives = Dealer Cost Dealer Cost x 1.02 – 1.08 = Your Reasonable Offer

16 ENJOY YOUR NEW CAR!!! Work on Part 4 of your Life Portfolio

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