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Buying a car

Buying a car. Ms. Perez. Bell ringer. Pick and respond to one: What are the benefits of owning a car? What are some uses for a car? What are some reasons people would and would not own a car? . Sticker Price. Manufacturers list price IS the sticker price the FINAL price on the car?.

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Buying a car

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  1. Buying a car Ms. Perez

  2. Bell ringer • Pick and respond to one: • What are the benefits of owning a car? • What are some uses for a car? • What are some reasons people would and would not own a car?

  3. Sticker Price • Manufacturers list price • IS the sticker price the FINAL price on the car?

  4. NO!!!! • Example in a $20,000 dollar car, the invoice price (which is what the dealership pays) is about $15,000-$3000. • What does this mean?

  5. Where can you buy a car?

  6. Where can you buy a car? • New-Car dealerships • Used-car dealerships • Private parties • Newspapers, online, driving through town

  7. What are some things that you need to be careful of when you buy a car?

  8. On-lot inspection • Engine leaks • Look under car for leaks of the oil, coolant or transmission • Exterior panels • Rusk • Interior panels • For water damage/signs of leaking • Tires • Tire treads • Having to get new tires isn’t a deal breaker BUT uneven wear could reveal a more serious car problem • Odometer • Tells you the mileage of the car

  9. http://www.youtube.com/watch?v=NHIfyhDzZ8o

  10. Pick the BEST • Go to each station and pick out the best choice in cars.

  11. How can I afford a car?

  12. Loans and Financing • Credit Unions • Banks • Car Dealerships • Should you get a loan before or after you decide on a car?

  13. Payments • Down payment • The higher the down payment the _________ the monthly payments • Monthly Payments • How much you pay monthly • Depends on the repayment period

  14. Price points • Private sale price • The price you could expect to get for this car if you sold it yourself to another person • Trade-in price • What the dealer would offer you in trade value • Retail price • What you would expect to pay for this car at a used dealership • Why do you think that there are different price points?

  15. How do you find how much you should pay with your car?

  16. Kelley Blue Book • Gives car value BASED ON • Mileage • Location • Year • Make • Model • Manufacturer’s Suggested Retail Price • Dealers cost

  17. Given one of four ratings • Excellent • Looks new • Excellent mechanical condition • Never had any paint or body work

  18. Good • Free of major defects • No major mechanical issues • Paint, body, and interior • Little to no rust • Most consumer owed vehicles fall into this category

  19. Fair • Some mechanical or cosmetic defects • Needs servicing but is reasonable • Paint, body, and or interior need work from a professional • Tires may need to be replaces • Repairable rust repairs

  20. Poor • Severe mechanical and/or medical cosmetic defects • Poor running condition • Problems that can’t be readily fixed • Mileage is poor

  21. What do you think the most important factor to buying a car is?

  22. Financing a car • How do you figure out the ACRUAL cost of a car? • How do you figure out what your monthly payments are?

  23. Steps to figuring out the actual cost in financing a car • Lets say the car costs $13,000 • You get a loan that is an interest of 10.25% for 4.5 years • What should you do first?

  24. Take the interest (10.25) and move the decimal over by 2. • Example .1025 • Take that number and multiple it by the car cost. • Example .1025 X 13,000=1332.50, this is the COST of interest.

  25. Add the cost of interest to the original car cost.   • Example $14, 332.50, this number is the TRUE cost of your car. • Then what?

  26. Next take the length in years multiplied by the # of months in a year. • Example: 4.5X12=54-This is the # of payments you will make • Take the TRUE cost of your car and divide by the # of payments you will make • Example: 14,332.5/54=$265. 42, this is your monthly payment

  27. Table races • The car cost on the lot is $20,000 dollars • The loan is 7% interest for 5.5 years • What is the TOTAL cost of the car? • What are the monthly payments?

  28. .07 X 20,000= 14,000 • 14,000+20.000=21,400 • 5.5 X 12=66 • 21,400/66= 324.24

  29. You car costs $50.000 • Your interest is 15% for 4 years • What is the TOTAL cost of the car? • What are the monthly payments?

  30. .15 X 50,000= 7,500 • 50,000 + 7,500= 57,500 • 4 X 12= 48 • 57,000/48= $1,197.92

  31. The car costs $75,000 dollars • The interest rate is 8% for the next 7 years • What is the actual cost of the car? • What are the monthly payments?

  32. .07 X 75,000= 5250 • 75,000 + 5,250= $80,250 • 7 X 12=84 • 80,250/84= 955.34

  33. The car costs $10,000 dollars • The interest rate is 10% for the next 3 years • What is the total cost of the car? • What are the monthly payments?

  34. .1 X 10,000= 1,000 • 1,000 + 10,000=11,000 • 3 X 12=36 • 11,000/36= 305.56

  35. The cost of the car is $45,000 • The interest rate is 9% for the next 5 years • What is the total cost of the car? • What are the monthly payments?

  36. 45,000 X .09= 4,050 • 4,050 + 45,000= 49, 050 • 5 X 12= 60 • 49.050/60= 817.50

  37. TOTD: • Does the length of the payments affect the price of the car? Why or why not?

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