1. How long does the average American use a new car before buying a new one? 5 years

2. Shopping for a Car Unit 9

3. New or Used? Benefits of buying new ▫More reliable than a used car (usually) ▫Lasts longer than a used car (usually) ▫There’s no history  You know what you’re getting ▫Customization options  Get it exactly how you want it ▫Could be safer than a used car  Newer safety technology

4. New or Used? Benefits of buying used ▫CHEAPER! ▫Less depreciation than a new car  A new car loses 11% of its value the moment you drive it off the lot  During the first 5 years, the car depreciates between 15% and 25% each year  After 5 years, the car has lost 63% of its value ▫Could be just as reliable, safe, and last just as long as a new car

5. Used Car: Private or Dealership? Benefits of buying from a private owner ▫Cheaper  Owner probably isn’t trying to make a profit Benefits of buying from a dealership ▫Might offer warranty ▫Certified used cars are thoroughly checked

6. Lemon Laws Protect you if you buy a REALLY bad car ▫If your breaks down and cannot be fixed after 4 repair attempts, it is considered a “lemon” ▫You are entitled to a full refund or replacement at the manufacturer’s expense Usually only apply to new cars, not used ▫Some states do have used-car lemon laws (not IN)

7. Research Ways to research cars ▫Online  Edmunds.com, kbb.com (Kelly Blue Book), cars.com, etc ▫Car review magazines ▫Word of mouth  Ask around ▫Test drive  How does it sound? How does it feel? ▫Have a mechanic look at it (especially used cars)

8. Quick Review 1.What might be some reasons why you would NOT want to buy a new car? ▫D▫Depreciation, more expensive 2.Why might it be a better idea to buy a used car from a private owner? ▫G▫Get it cheaper 3.If you buy a new car with a lot of defects, what protections are in place to make sure you aren’t getting stuck with a piece of junk? ▫L▫Lemon Laws 4.True or False: Car manufacturers have made it difficult to research for cars when you are shopping