1. Buying a Car

2. Important Car Buying Trade-Offs The smaller the engine, the less gas it burns Give up better acceleration and power Newer Automobiles Cost more Require fewer repairs Smaller vehicles are more energy efficient; easier o move and park Larger vehicles protect people better Can you think of any others??????

3. Two types of vehicles

4. Costs of Buying a Car Opportunity Costs of Buying outright: Money and time spent shopping That money could be used on other things Opportunity Costs of the Car loan: The loan with interest added

5. Costs of Operation Registration fee: Annual fee paid to state government to run a vehicle Costs depends on many factors Maintenance: Minor Maintenance: Oil Change (Tune Ups) Frequent service=longer lasting vehicle Major Maintenance: High Cost Do your research! Extended Warranty:

6. Two last vehicle Cost Depreciation: Decline in value over time Age, obsolescence, and wear and tear Insurance:

7. Making the Best Choice Talk to friends Read Consumer Reports Comparison Shopping: Dealers Warranty Comparison Test Drive Safety Features Get used cars inspected

8. Getting a Good Deal Window Sticker: Suggested Retail Price Watch for sales and promotions: Rebates APR Specials

9. Buying vs. Leasing Lease: contract for use of a vehicle for a specified term Purchase option: After term is up, you can buy Why Lease? No down payment Does not tie up credit Pay only for what you use

10. Ways of Purchase Cash Financing Either through the dealership or lending company (Bank) Fixed Rate: Rate remains the same Variable Rate: Fluctuates according to market index

11. Buying a Used Car Check “Buyers Guide Sticker” Required on all used cars by law States any warranty info or “As Is” States you should get vehicle inspected States you should get all promises in writing “As IS” No Warranty Dealer has no further responsibility Implied Warranties Warranty of Merchantibility: product will do what its supposed to Warranty of fitness for a specific purpose Ex. It will haul a trailer

12. Buyers Guide

13. INSURING A VEHICLE A.No-Fault Insurance – Passed in 1976 - everyone must have no-fault insurance - When an accident occurs each owners insurance company will pay immediately by their insurance company. Insurance companies will investigate who was at fault and settle up later.

14. INSURING A VEHICLE A.Liability Insurance - pays for damage to other person’s car and injury - required insurance “minimum insurance” B.ND minimum - Bodily injury: $25,000/$50,000 - Property: $25,000 per accident

15. INSURING A VEHICLE A.Comprehensive Insurance: -Covers your vehicle for damage/loss that occurs from theft, damage by flood, fire, or glass breakage. B.Collision: - Pays for damage to your car caused by collision (less the deductible.

16. INSURING A VEHICLE A.Uninsured/Underinsured - covers your losses if someone at fault has no insurance. B.Deductible - amount one must pay before insurance kicks in C.Premium - payment for insurance