1. Buying a Car

2. Objectives  Students will:  be able to find a car that fits your needs.  be able to decide whether a new or used car is right for you.  decide whether buying or leasing is right for you.  Understand the hidden costs of operation and maintenance.

3. Do Now:  Is it better to buy or lease a car? Why or why not? Support your answer.

4. Buy Vs. Lease  Own the vehicle  Monthly payments are usually higher  Early termination: you can sell or trade your car at any time  Free to drive as many miles as you want  Don’t own the vehicle  Monthly payments are always lower  If you end the lease early, early- termination charges  Most leases limit the number of miles you drive to 12,000 or 15,000 per year

5. Leasing Vs. Buying Leasing might be a good option if:  If you want a new car and you plan on driving it only for a couple of years:  Can get a car with little or no money down.  Can help you get a more expensive car than you might otherwise be able to afford. Buying a Car:  A 20% down payment is recommended  You will probably pay off the loan before the car stops working  At the end of your lease you have the option of buying out the car, but overall it will cost you more money than purchasing the car flat out.

6. Which Car is Right for You?  Want Good Gas Mileage:  smaller car  Do you carry many passengers?  Larger car

7. New or Used?  New cars can cost you a lot more without offering much value.  Over the first two years, a new car loses 30% of its resale value  Offer a warranty and certain peace of mind that used cars cannot offer.  New cars you can get exactly what you want.  Used cars look like a better option.  However, cars can break down after they are purchased  Solution: car dealers offer certified pre- owned programs to combat this problem and to ensure the quality of their used cars.

8. What can I Afford?  Need verse Wants  Coupe: is a small car with two doors and two main seats: saves on gas  SUVs: have multiple rows of seating  Minivan: provides even more room  Sedan: very popular, offers two rows of seats, and a spacious trunk

9. Insurance  No-fault auto Insurance : the driver’s insurance will pay to fix the damage of his or her car even if the driver wasn’t faulted for the accident. (not in every state)  Liability Insurance  Covers the cost of any damages you cause to other drivers, but does not pay to fix your car if the accident is your fault.  Required by law  Collision Insurance : pays to fix the damages to your own car if the accident is your fault.  Optional

10. Where to Go to Find a Car  Magazine like Consumer Reports,  Car and Driver, and Road and Track offer expert opinions and test-drive reviews.  Used cars: Kelley Blue Book  Will help determine the value of a particular make and model and offer advice on how to deduct for any damages caused by the previous owner  http://www.kbb.com http://www.kbb.com

11. What Lenders look for?  Steady Income:  Established Residence:  Established Employment:  Credit History:

12. Operation and Maintenance  Gas: the size of your car will greatly affect how much you have to spend on gas  If you have a long commute, you should look for a car that is fuel efficient.  Other costs:  Parking  Oil Changes  Repairs  Tire Replacement

14. https://www.youtube.com/wa tch?v=dxhlCSEiGjU  Video

15. Video Main Idea  What did you learn from this video?  Write down what you learned and hand it in at the end of the class.