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Chapter 23

Chapter 23. Buying and Owning a Vehicle. Steps in the Car-Buying Process. Identify your _________________ Determine what you can _______ Identify and _________ your choices Decide whether to buy ____________ Decide how you will _____ for it Check ___________ rates

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Chapter 23

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  1. Chapter 23 Buying and Owning a Vehicle

  2. Steps in the Car-Buying Process • Identify your _________________ • Determine what you can _______ • Identify and _________ your choices • Decide whether to buy ____________ • Decide how you will _____ for it • Check ___________ rates • _________ for available vehicles • _____________vehicles • Check the car’s __________ • Get the vehicle __________ checked • Determine/negotiate a ______ ______

  3. Steps in the Car-Buying Process • Identify your wants and needs • What ________ would you like • ________ your wants • Be ___________ about your needs • Determine what you can afford • Monthly payments should be no more than _______of $ left after paying all regular monthly expenses • Budget for

  4. Steps in the Car-Buying Process • Identify and Research Choices • Decide Whether to Buy New or Used • New: • Used

  5. Steps in the Car-Buying Process • Decide how you will pay for it • Pre-approval – • Approval is good for ___________ • Loan officer will determine how much the bank/credit union is willing to loan • Check Insurance Rates • Call you insurance agent for a preliminary quote

  6. Steps in the Car-Buying Process • Search for Available Vehicles • Test Drive Vehicles • Check History of Used Vehicles • VIN – • Use VIN to check car’s history; can use _______; will list all previous owners, accidents, mileage at each sale

  7. Steps in the Car-Buying Process • Get the Vehicle Checked Mechanically • For used vehicles: • Have a mechanic conduct a compression test, check the transmission, tires, brakes, etc. • Emissions test – • Ask the seller for records of maintenance, emissions tests, and inspections

  8. Steps in the Car-Buying Process • Determine a Fair Price • Check __________________ • Fair price based on year, mileage, condition of the car (for used cars) • Sticker price – • Invoice price – • Fair price is likely to be _____________above invoice price

  9. Steps in the Car-Buying Process • Negotiate the Price • Make your initial offer _________ than the max price you’re willing to pay • Negotiate new car price separate from the __________ • Don’t let your __________ show • Sell your old car rather than trading it in if the dealer doesn’t offer you a reasonable amount

  10. Dealer Negotiation Techniques • “Need approval from a supervisor” • Using pressure • Low-balling – offering an unrealistically low price on your trade-in to make it look like they are cutting you a break when they give you more • High-balling – offering an unrealistically high price for your trade-in and then saying that the boss didn’t approve the amount • Pushing dealer add-ons –

  11. Financing Your Car • Loans are offered in __, __, __, and ___ month terms • Longer terms mean you pay more in total • ________ _______ offer the best deals • Compare interest rates • Can finance at most dealerships through finance companies (ex: GMAC) • Watch for ____________

  12. Leasing a Car

  13. Consumer Protection • Warranty – • Warranties usually run out after stated ______________, which ever comes first • Lemon laws protect owners who bought “lemons”; allows you to get a new car or your money back

  14. What is a “Lemon?” • Lemon – • A) you’ve taken the car into the dealer for 4 unsuccessful attempts to repair the same defect OR • B) your car has been out for service for a total of at least 30 days

  15. Consumer Protection • FTC Used-Car Rule • Federal Trade Commission • Requires used car dealers to inform consumers ahead of purchase about who will be responsible for paying for certain repairs

  16. Cost of Operating a Car • Gas and Oil • Depreciation • Registration and Title • Maintenance and Repairs • Accessories

  17. Cost of Operating a Car • Gas and Oil • Depreciation • Factors include age, mileage, mechanical condition, brand or style, color, etc. • Vintage/classic cars can appreciate in value

  18. Cost of Operating a Car • Registration and Title • Car Title– • Pay title fees and sales tax at time of sale • Pay registration fees yearly • Maintenance and Repairs

  19. Extending the Life of Your Car • Maintain fluid levels • Perform routine maintenance • Keep car in a garage • Preserve exterior • Preserve interior • Follow wise driving habits

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