Presentation Transcript

1. Owning A Vehicle

   Chapter 16 Part II
2. Buying a Pre-owned Vehicle May be purchased from: New car dealer Used car dealer Car rental company Private party Sometimes banks and loan companies sell repo’s Can search for them online
3. Buying Used from a Dealer Many have a large selection Some do not have service facilities to fix vehicles When selling a vehicle, a dealer gives an implied warranty that the vehicle is merchantable By offering the warranty of merchantability, the dealer warrants that the vehicle is fit for ordinary purposes The warranty of fitness for a particular purpose also applies when you buy a vehicle based on the seller’s advice that it is suitable for a particular purpose
4. The Used Car Rule Requires all used car dealers to place a large sticker, called a Buyer’s Guide in the window of each vehicle they offer for sale It explains any specific warrant protection that is provided Also states whether there is No warranty “As Is” warranty Implied warranty Have vehicle inspected by your own mechanic before you buy
5. Buying from a Private Party If you don’t know the person, you buy the vehicle “as is” – there is no warranty An exception occurs when seller gives an express warranty stating that there is nothing wrong with the vehicle Has the vehicle been stolen? If so, the bank or loan company may repossess regardless of who presently owns it
6. Buying from a Private Party Before you buy, be sure to: Inspect the vehicle carefully or have it inspected by a mechanic Test-drive the vehicle Ask for the vehicle’s maintenance record Talk to previous owners Ask to see the certificate of title – be sure the person selling is the name on the title
7. Buying from Rental Companies Companies often buy fleets of new vehicles and sell them after 1 or 2 years Can be a good buy Beware—most will be heavily used and have high mileage On a positive note Rentals typically have regularly scheduled maintenance Come with warranties
8. The Contract to Buy a Vehicle Under the UCC, contract for the sale of goods valued at $500 or more must be in writing to be enforceable Private parties can simply write out on a piece of paper their intent to buy and sell Law does not require a deposit, but seller has the right to require one as a condition of the contract A dealer will ask the buyer to sign a printed form with an adhesion contract on the back Is a standard-form contract—buyers should read it an cross out anything they don’t agree with before signing
9. Buy a Defective Vehicle?? Notify the seller immediately! Seller can be asked to Fix the problem Pay to have it fixed Give your money back Revoking acceptance-if defect is serious and undetectable Revocation must be done in a reasonable amount of time after defect is discovered
10. State Lemon Laws Protects consumers when they buy defective vehicles, either new or used To qualify under the New York Lemon Law or the federal Lemon Law, you must generally have a product that suffered multiple repair attempts under the manufacturer's factory warranty. Lemon Law compensation can include a refund, replacement or cash compensation.
11. Federal Consumer Protection The Federal Motor Vehicle Information and Cost Savings Act has established bumper standards for passenger vehicles Establishes average fuel economy standards – label must be placed on each new vehicle sold Must show the fuel economy Estimated annual fuel cost of operation Range of fuel economy of comparable vehicles Odometer Protection – illegal to turn back or disconnect odometer
12. Repairing a Vehicle Most states require auto repair shops to be licensed and registered Shop around for repair shops Today, vehicles are more complicated which requires special knowledge and equipment to repair them Many states require shops to give repair estimates up front before any work is done Dealerships tend to charge more for repair work that is not warrantied, but usually have highly skilled workers
13. Loan Payment Examples Vehicle #1 (Used) Finance (borrow) $12,385 Down Payment = $1500 Term of loan = 5 years (60 Months) APR = 6.50% Monthly payment: Finance Charge: Vehicle #2 (New) Finance $24,590 Trade-In Value $3800 Term of loan = 6 years (72 months) APR = 3.50% Monthly payment: Finance Charge: