1. Buying & Insuring a Car Klein Oak High School Gary Nelson October 2004

2. Financing a Car “You will save money if you pay cash.” –That’s what the book says. It’s not necessarily try. Compare what it costs you to borrow money with what it costs you to pay cash. Paying cash means foregoing the opportunity to invest that money! It’s generally cheaper to borrow money from a credit union, if you belong to one.

3. Regulation Z Lenders must disclose 1.the finance charge (e.g. $3,426.95) 2.the APR (Annual Percentage Rate) (e.g. 7.25% apr)

4. Implied Warranties merchantability – if you buy from a dealer –Can be disclaimed “as is” “with all faults” –Cannot be disclaimed when an express warranty is made.

5. Used Car Rule FTC requires dealers put a “Buyer’s Guide” in window of car, sayingBuyer’s Guide express warranty? implied warranty? or “as is” known major problems recommend mechanic inspection get all promises in writing

6. Private Parties usually “as is” But, if an express warranty is made, it prevails over any “as is” statement. Check the back of title for liens. Carfax report will disclose prior accidents, flooding, etc.

7. Texas “Lemon Law” http://www.dot.state.tx.us/mvd/lemon/ lemonlaw.htmhttp://www.dot.state.tx.us/mvd/lemon/ lemonlaw.htm

8. Motor Vehicle Information and Cost Savings Act –bumper standards –fuel economy –label fuel economy estimated annual fuel cost range of fuel mileage of comparable vehicles

9. Odometer Protection It is illegal to change an odometer setting. Sellers must swear that odometer is accurate or that mileage is unknown. Repaired odometers that cannot be set at the true mileage must be reset to 0.