Buying a Car

1. 10 Steps Buying a Car

2. Step 1: Know Your Shopping Style Price Shopper Best possible price Gets you from Point A to Point B Value Shopper Good Price but willing to pay for premium quality

3. Step 1: Know Your Shopping Style Image Shopper What the Vehicle says about you ---desirable image Methodical Shopper Cover every base Leave no information to guess work

4. Step 2: Narrow Down Your Shopping List • How Do You Narrow-Down the List? • Lifestyle • Activities • Uses for Vehicle • Number of Seats • Color • Style • Comfort • Towing Capacity

5. Step 3: Calculate What You Can Afford • Trading-In or Selling to a Private Buyer Scenario: • Trade-in value of current vehicle is $10,410 • I owe $2,500 on it • I’ve got $2,000 in savings as down payment • I want to pay under $400 per month for 60 months (5 years)

6. Step 3: Calculate What You Can Afford New Car Pricing • Invoice Pricing – dealer’s cost for vehicle only • MSRP Price – sticker price • New Car Blue Book Price Range – Kelly Blue Book • Pre-Owned Vehicle Pricing

7. Step 4: Do Your Research Online Not just Price and Equipment Options • Safety – car built for safety • Quality – mechanical, features, body, interior • 5-Year Cost of Ownership – depreciation, financing, insurance, state fees, repairs, maintenance • Expert Opinions – what the Pros have to say

8. Step 5: Know When the Price is Right Invoice Price – what’s the lowest the dealer may go and still make a profit MSRP – Manufacturer’s Suggested Retail Price – suggested price only New Car Blue Book Value – updated weekly – most reliable pricing tool – shows the current market going rate

9. Step 6: Leasing vs. Buying Leasing • Lower monthly payments • Less money down • Restrictions • Mileage • Diligent Upkeep • Optional Purchase Price at end Buying • Calculate Monthly Payment • Cash for Tax, Title, Registration • Arrange Financing • Incentives - Dealer

10. Quick Glance Lease vs. Buy

11. Step 7: Find Financing, Warranties and Insurance • 0% Financing • Good Credit Rating (above 650) • Warranties – Extended or Service Contract • Insurance Rates - Shop Around • Depends on Vehicle

12. Step 8: Sell or Trade Current Vehicle Trading Dealer Trade – easy, quick – dealer does all the paperwork CHECK KELLY BLUE BOOK PRICE – dealer may not give you the whole amount Trading a car that you still owe money on? Your balance can be added to new loan  Selling • May Get More Money • You absorb costs of getting it ready to sell • Patience • Good Judgment • Put it in WRITING • Request payment – Cashier’s Check • Sell As-Is • Service Records • Must disclose any serious issues

13. Step 9: Consider Your Buying Options Pick A Dealer • Direct Buying Sites – acts as a broker for you • Dealer-Referral Buying Sites – dealer sites on the net • Manufacturer’s Sites – must go to them

14. Step 10: TEST DRIVE IT • Kick the Tires! – how does it look up close? • Ride Comfort • Noise • Power/Acceleration • Braking • Handling – curves, short stops, parking • TAKE SOMEONE ELSE WITH YOU --- have them check out the “list”

15. Sites to Use • www.kbb.com • www.edmunds.com • www.cars.com • www.carfax.com • www.vehix.com • Zillions others

16. Assignment – Create PowerPoint • Identify Your Shopping Style (one slide) • Create list of Wants and Needs in a vehicle (one slide) • Find the top three choices that fits your list (one slide per car -3) • Decide which one it will be (one slide) • Include Pricing Information/Monthly costs • Leasing or Buying • Warranty Information • Insurance Information • Did you have a Vehicle to Trade • Did you Sell a Vehicle first? • Spell check and proofread • Use Transitions and Animations, Be creative