Vehicle Vehicle TransportationTransportation

Purchasing a New Purchasing a New VehicleVehicle

• Sticker PriceSticker Price: The total price of the vehicle, including : The total price of the vehicle, including the base price, options, and destination charge.the base price, options, and destination charge.

• Base PriceBase Price: The price of vehicles engine, chassis, and : The price of vehicles engine, chassis, and any other standard equipment for a particular model.any other standard equipment for a particular model.

• Options: Options: Extra equipment on a vehicle not included in Extra equipment on a vehicle not included in the base price, such as a sun roof, air conditioning, the base price, such as a sun roof, air conditioning, and tinted glass.and tinted glass.

• Destination ChargeDestination Charge: The cost of shipping a vehicle : The cost of shipping a vehicle from factory to the dealer.from factory to the dealer.

Sticker Price=Base Price + Options+ Destination Sticker Price=Base Price + Options+ Destination Charge Charge

Dealers CostDealers Cost• Dealers Cost:Dealers Cost:

Vehicle dealers pay Vehicle dealers pay less than the less than the sticker price for sticker price for both the basic both the basic vehicle and options. vehicle and options. – Some dealers pay Some dealers pay

for 95 percent of the for 95 percent of the base price and 89 base price and 89 percent of the percent of the options price!options price!

Purchasing a Used Purchasing a Used VehicleVehicle

• Dealers price the vehicles higher Dealers price the vehicles higher than what they expect you to pay!!!!than what they expect you to pay!!!!

• Used-Vehicle GuidesUsed-Vehicle Guides: published : published monthly by the National Automobile monthly by the National Automobile Dealers Association or Vehicle Dealers Association or Vehicle Market Research give average Market Research give average prices for vehicles that were prices for vehicles that were purchased during the previous purchased during the previous month.month.

Vehicle InsuranceVehicle Insurance• Liability InsuranceLiability Insurance: Financial protection : Financial protection

against accidents that cause bodily injury against accidents that cause bodily injury and property damage. and property damage.

• Comprehensive InsuranceComprehensive Insurance: Protects you : Protects you from losses due to fire, vandalism and theft.from losses due to fire, vandalism and theft.

• Collision InsuranceCollision Insurance: Pays repair of vehicle : Pays repair of vehicle if its in an accident.if its in an accident.

• DeductibleDeductible: Amount you pay before the : Amount you pay before the insurance pays anything.insurance pays anything.

Operating and Maintaining Operating and Maintaining a Vehiclea Vehicle

• Variable CostsVariable Costs: increase the more you : increase the more you drive. drive. – GasolineGasoline– TiresTires

• Fixed CostsFixed Costs: remain about the same : remain about the same regardless of how many miles you drive.regardless of how many miles you drive.– InsuranceInsurance– RegistrationRegistration

• DepreciationDepreciation: decrease in the value of : decrease in the value of your vehicle because of its age and your vehicle because of its age and condition.condition.

Leasing a VehicleLeasing a Vehicle

• Lease: you make monthly payments to the Lease: you make monthly payments to the leasing company, the dealer, or the bank for leasing company, the dealer, or the bank for two to five years. You don’t own the car, two to five years. You don’t own the car, you are essentially renting the car!you are essentially renting the car!

Important Important QuestionsQuestions

What formula do I use?What formula do I use?

How do How do

I calculate I calculate the the

Total cost Total cost

of the lease.of the lease.

Total Lease of Car= Total Lease of Car=

(Number of Payments X Amount of Payment) (Number of Payments X Amount of Payment)

+ +

depositdeposit

+ +

Title Fee Title Fee

+ +

License FeeLicense Fee

Renting a VehicleRenting a Vehicle

• Rent: Payment for the use of the Rent: Payment for the use of the property, such as a building or property, such as a building or vehicle, often on a daily, weekly, or vehicle, often on a daily, weekly, or monthly basis.monthly basis.

Cost per Mile = Cost per Mile = Total CostTotal Cost

Number of Miles DrivenNumber of Miles Driven