REVIEW WINNERS

100 points• Tula •Matt & Peter

Worked Solo• Charlie• Savannah• Kim

U N I T 5 : M A J O R P U RC H A S E S

BUYING A VEHICLE

STEPS IN THE CAR BUYING PROCESS

1. Identify wants and needs• How many miles do you typically drive?• Do you haul anything? (camper, boat, trailer)• Do you need to do any off-roading?• What features would you like to have if you could afford

them?

2. Determine what you can afford• Monthly payment =no more than 20% of money after ALL

OTHER EXPENSES are paid• Other considerations…gas, car insurance, and annual license

fee ($75)

STEPS IN THE CAR BUYING PROCESS

3. Identify and research your choices• Carsoup• Edmunds• Autotrader

4. Decide: new or used?

Advantages Disadvantages

New WarrantyLooks nice

ExpensiveDepreciation

Used Less expensive Maintenance

Ferrari makes a maximum of ____ cars every day. 14

STEPS IN THE CAR BUYING PROCESS

5. Get Credit Pre-approval• How much $ are you QUALIFIED to borrow?• To get pre-approval…

• Visit a bank/credit union• Loan officer will decide if and how much they will lend you

6. Search for AVAILABLE vehicles in your price range

7. Test drive each vehicle• Compare ride, handling, braking, features, and cost• Try the radio, air conditioning, heat, and

other features• Listen to the engine

STEPS IN THE CAR BUYING PROCESS

8. Show me the CARFAX!• Locate the Vehicle Identification Number (VIN) on the

dashboard on the driver’s side of the car• Cost

• Initial (vague) report=free• 1 detailed report=$39.99• 5 detailed reports=$49.99• Unlimited reports for a year=$54.99

9. Get the vehicle checked out mechanically• Cost=approx. $150• Brakes, tires

An airbag takes only ____ milliseconds to inflate after an accident.

40

STEPS IN THE CAR BUYING PROCESS

10.Determine a fair price• Kelly Blue Book www.kbb.com• Find the estimated fair price• For a new car, the sticker price, or MSRP is shown on the tag

in the car’s window• MSRP=Manufacturer’s Suggested Retail Price• The fair price is between the invoice price (what the dealer paid

for it) and the sticker price

11.Negotiate price• High pressure• Stick to facts & don’t reveal

emotions to seller

FINANCING

• Cash• Loan through Car Dealership• Loan through Bank/Credit Union

The world’s longest traffic jam was between Paris and Lyon on the French Autoroute in 1980. It was ___ miles long.

110

LEASING

• Make monthly payments• Give up car at end of a specified time period• End of term, you have the option of purchasing

the vehicle• Why would somebody want to lease?• Can lease a nice vehicle that you wouldn’t be able to

purchase outright

LEASING

___% of car owners admit to singing behind the wheel. 90

VEHICLES AND THE LAW

• Consumer Protection for car buyers• Warranty: written statement about a product’s qualities

or performance that seller assures the buyer are true

• Lemon Laws• Lemon: a car with substantial defects that the

manufacturer has been unable to fix after repeated attempts. It must be…• First year of ownership or under 12,000 miles• Taken car into dealership 4 times for the SAME defect within

that year• Out of service for 30 days

• Allows you to get a new car or your money back

VEHICLES AND THE LAW

• FTC (Federal Trade Commission) Used Car Rule• Used Car Dealers MUST inform customer

who will pay for certain repairs

• “Buyer’s Guide” Sticker• “As Is” box checked=BUYER pays

for all repairs• “Warranty” box checked=DEALER

pays for repairs to the items listed• Good only for a limited time!

CAR CHALLENGE

• Dream Car Money is NO concern• Happy Car Realistic Vehicle• Practical Car Best Value/Investment

Create a collage including…1. Picture of each car2. Price of each car3. 3 Advantages of owning each car4. 3 Disadvantages of owning each car

30 points

WISCONSIN INSURANCE LAW

Wisconsin drivers and owners of motor vehicles are required to show proof of insurance by law enforcement at…• Traffic stops• Accidents

WISCONSIN INSURANCE LAW

Fines associated with vehicle insurance…

• Up to $500 for operating without insurance

• Up to $10 for no proof of insurance at a traffic stop/accident

• Up to $5000 for offering fraudulent proof of insurance

INSURANCE & VEHICLE VALUES

Part 1: InsuranceGo to Progressive enter information for a quotePrint the quoteAnswer questions on worksheet

Part 2: Value of Your VehicleGo to Kelley Blue BookGet information about Trade-in & Private Party ValuesAnswer questions on worksheet