1. Buying and Maintaining a Car

2. Objectives/Focus Questions 1.What are some publications that provide information on different makes and models of automobiles? 2.Where can you look to buy a used car? 3.What are the things to check when examining a used car? 4.Why should you not buy a car? 5.What is the purpose of “lemon” laws? 6.What can you do to reduce the need for major car repairs? 7.If you buy a new car, where are you likely to get good service?

3. Making Informed Decisions Various print materials and internet sites have buying guidelines, tips for evaluating vehicles, and other information about costs and reliability. Example Consumer reports magazine Edmunds.com

4. Shopping for a Used Car Depreciation the decline in value of a car due to age

5. Advantages to buying a used car More affordable Major problems have been discovered and corrected

6. Where to look Private sale (used cars less than 3 years old are covered under manufacturer’s warranty and are transferable) Manufacturer’s warranty a written guarantee against specific defects Obtain a Carfax Obtain maintenance records if possible (might be included in Carfax)

7. New Car Dealers Trade ins the cars that new car buyers turn in as partial payment on their new car purchases The used cars typically offer a limited warranty

8. Use car dealers Their used cars typically offer a limited warranty

9. Banks and Finance Companies Their cars offered for sale have been repossessed – taken back because of missed loan payments Usually advertised in local newspapers

10. Rental Car Agencies Usually come with a limited warranty

11. Online listings Ebay motors Car Max Craigslist Auto shopper Web sites of car dealers

12. What to look for Check the interior and exterior Tires

13. Go for a test drive Does the car shift smoothly? Good acceleration? How does the car handle? How are the brakes? Enough headroom and legroom? Driving position comfortable? Air conditioning and heating working?

14. Are the controls and gauges easy to use? Visibility good?

15. Check the vehicle history report Car fax VIN (vehicle information number) a unique number assigned to a car at the factory for identification purposes

16. Get a mechanic’s evaluation Excessive rusting or cracks in the frame Check all major mechanical systems: steering, braking, electrical, and exhaust systems Look for fluid leaks, and examine the belts and hoses ECM (electronic control module) controls engine operation and emissions

17. Get a clear title Title a document that indicates the legal owner of a vehicle

18. When not to buy Is the salesperson pressuring you too much? Are you told that you must decide immediately? Were you refused a test drive or the chance to have your mechanic check out the car? Is it an online purchase that you have not evaluated in person?

19. Getting the best deal Make the lowest offer you think might be accepted Used Car Rule a federal trade rule requiring dealers to place a Buyers Guide on every used car, telling the buyer both whether the car is being sold “as is” or with a warranty, and how much of the repair costs the dealer will pay Cars sold by a private individual are not covered by the Used Car Rule

20. Use Car Warranties Some warranties provide for all parts and labor for ninety days Some pay half the cost of repairs for a certain period of time Get it in writing

21. Shopping for a new car Do your homework Check evaluations of cars in car magazines, consumer publications, and web sites Take a test drive

22. New car warranties Bumper to bumper for 3 years or 36,000 miles which ever comes first 5 year or 60,000 miles limited powertrain warranty New car warranties may vary considerably among car manufacturers

23. Negotiating the Best Price Know the Invoice the price the dealer pays the manufacturer for the car Sticker price (MSRP) the retail price that the manufacturer sets for the car typically 10 to 15 percent above dealer’s cost Destination charge Rebates

24. If you have a Trade In For trade in value check the NADA price guide and/or Kelley Blue Book Keep the purchase and trade in deals separate You usually can get a higher price for your old car by selling it yourself

25. Lemon laws Laws providing relief for people who buy new cars that do not meet basic standards of quality and performance New vehicle that has been in the shop at least four times for the same repair, or is it out of service for thirty days or more during the first year

26. Financing a Car Many lenders require that you pay at least 20 percent of the selling price as a down payment Trade in may serve as your down payment

27. Arranging a Loan Cosign to act as joint signer on a loan, guaranteeing pLayment if the primary signer does not meet the requirements Banks, S&Ls, credit unions, finance companies, dealerships

28. Exploring Your Options Check loan rates at Bankrate.com

29. Buying Insurance If you finance a car, the bank or loan company will probably require proof of insurance to protect its money in case the car is badly damaged.

30. What About Leasing a Car? Leasing a car is something like renting it for a specific period of time

31. Advantages of Leasing You can drive a new car or newly near car with a lower down payment than if you purchased the same car Your payments are lower than if purchase a car. You are not paying for the whole life of the car, just for the time of the lease period

32. Often the dealer will provide an excellent service package to be sure the car stays in good condition for resale at the end of the lease At the end of the lease you just give back the car to the dealer

33. Disadvantages of Leasing You do not own the car. At the end of the lease, you have nothing to show for the money you have paid

34. Private Transportation Protecting Your Investment Maintenance Tire pressure

35. Private Transportation Protecting Your Investment Maintenance Belts

36. Private Transportation Protecting Your Investment Maintenance Hoses

37. Private Transportation Protecting Your Investment Maintenance Washer fluid

38. Private Transportation Protecting Your Investment Maintenance Coolant / Anti-freeze

39. Private Transportation Protecting Your Investment Maintenance Brake fluid Power-steering fluid

40. Private Transportation Protecting Your Investment Maintenance Transmission Fluid Oil (change regularly to extend life of car)

41. Private Transportation Protecting Your Investment Arranging for repairs Driving for economy (http://fin.emcp.net/cartalk)http://fin.emcp.net/cartalk

42. Which of the following is not an important maintenance tip to prolong the life of your car? A.Check oil level often. B.Check tire pressure often. C.Check fluid levels often. D.Check hoses. E.Make sure radio volume is loud enough for you; if not, add speakers.

43. Which of the following is not an important maintenance tip to prolong the life of your car? A.Check oil level often. B.Check tire pressure often. C.Check fluid levels often. D.Check hoses. E.Make sure radio volume is loud enough for you; if not, add speakers.

44. What do you think? Discussion © EMC Publishing, LLC Do you thinking leasing or buying is the better option? Why? Do you check the oil, brake fluid, hoses, and transmission fluid on your own car? Why? How do you make sure your mechanic is not “ripping you off”?