1. The True Cost of Ownership What kind of car should you buy?

2. Learning Objective Describe the true cost of owning a car, including the vehicle's depreciation, financing, insurance, taxes, fuel, and maintenance Describe why it is expensive to own a new car

3. Opening Activity What is your dream car?

4. Possible Websites Go to http://www.edmunds.c om/tco.html http://www.edmunds.c om/tco.html One of you will pick a car from this site to illustrate the true cost of owning a vehicle

5. Cost Comparison Define terms found on the chart Fill out the chart for the new car Fill out the chart for the same make and model, only make it 2- 3 years older Then answer the four questions

6. Discussion Questions Discussion questions 1-4 Why does it usually cost more to insure a newer car? Why are taxes and fees usually more on a newer car? Why does it cost more to finance a newer car?

7. Summary Newer cars cost money because… –They are higher priced –They have higher taxes –They have higher insurance –They have higher financing charges (interest from car loan)

8. Exit Activity: Tell me on your way out the door one factor that makes new cars more expensive than older cars