1. Gettin’ a Car What does it cost? How do I get it?

2. Real Cost of a Car Ownership costs: insurance, finance charges, license, registration, taxes and depreciation Operating Costs: gas, oil, tires and maintenance

3. Vehicle types and Cost Sub-compact: $19.18/day Compact: $20.25/day Mid-Size: $23.93/day Mini-van: $21.58/day Full-size: $29.93/day

4. Total Costs of Loans APR= Annual Percentage Rate (10%) Loan amount X APR X Number of years Example: $10,000 X 0.10 X 5 years = $5,000 Add the $5,000 to your $10,000 and the total is 15,000 dollars.

5. What’s the monthly payment? If the car is $15,000 loan cost in then the monthly payment is calculated by….. Total to be paid divided by the number of months in the loan. $15,000 / 60 = $250 per month

6. How do they decide insurance? Personal Characteristics: Age Gender Marital Status Education Type and frequency of vehicle use ( what’s the car for)

7. Continued…. Geographical factor: Rural is cheaper than city Driving Record: Accident involving death, injury or property damage Number and type of moving violations (total points on record) Number of years insured with the company

8. Almost done… Vehicle Characteristics Age of car Damage Repair Theft record (is it popular to steal) Model Colour

9. Insurance Coverage Liability (40-50% of premium) Bodily-injury Property damage Collision (up to 30%) Pays for damages to car as a result of accident. Limited by deductible (the amount you pay out of pocket before insurance kicks in)

10. More insurance coverage Comprehensive (about 12%) Pays for damage caused by vandalism, theft, hailstorms, floods etc… Medical Covers medical payments for drivers and passengers injured in an accident

11. What if I don’t pay? Rights of Creditor: Can seize car Can’t commit a breach of the peace (no physical force or threats) Can keep or re-sell car May not keep or sell private property within the car. (does not include your upgrades to the vehicle)

12. Repossession continued Your rights: May buy back the car by paying the full amount owed on it plus repossession expenses Your legal responsibility: Must pay the deficiency balance: - the amount of debt remaining even after your creditor has sold your car