Transcript Chapter 19
Chapter 19 Transportation Options • Mass transit= transportation systems like TANK buses • Saves energy, money, pollution • Pg 483 fig 19-2 Understanding Vehicle Financing • Buy or Lease? • Buy = pay in full or pay in monthly installments • Leasing = monthly payments in exchange for use of the vehicle for a time period (48 months) • Leasing is only for NEW vehicles • Leasing is less expensive monthly but can cost more in the long run Wear and Tear Mileage How long to keep the lease “Disposing of the vehicle” at end of lease If you cancel early pay fee • Up Front costs= the first’s month payment, security deposit, taxes, registration Shopping for a Loan • Find the lowest interest rate • Look at your personal finance • Pg 487 fig 19-5 • The Down payment = minimum 10%, but the larger the down payment, the less payments, can be trade in or cash, or rebate • Title = legal document that shows who owns the vehicle Shopping for a vehicle • New or Used?? • Research Makes and Models Safety Reliability Fuel economy Power and performance Comfort Insurance Road tests and reviews Researching Prices • Book value = estimated value of a given make, model, and year of vehicle Kelly Blue Book • New Car Price = invoice price- price the dealer pays the manufacture for the vehicle • Base Price= price with standard equipment, does not come with extras options • MSRP= manufacturers’ suggested retail price • Sticker Price= dealers’ initial asking price – on window of car Finding Vehicles • Private Owners • Dealers • Internet Evaluating a Vehicle • Inspect – odometer, tires, interior, exterior, heating and cooling, mechanical, body and frame • Read the sticker • Check warranty • Test Drive • Pricing = NEGOTIATE • Lemon Laws = laws that protect buyers of vehicles with serious defects • Sour Deals for buyers • Not successfully repaired after 4 attempts for same defect Owning a Vehicle • maintance schedule – routine servicing for car • Oil, transmission fluid, brake fluid, tire pressure, lights, battery • Get Estimates • Replacement Parts • Recall= manufactures request for owners to take to dealer for repair Interest Costs • Calculate the costs of taking a loan out for $5,000 for a used vehicle with the terms of 36, 48, and 60 months. Interest rate is 7%. Show your results on a bar graph. • If you were buying a vehicle, how these interest costs impact your decisions about financing? Kelly Blue Book Values • Go to www.kbb.com and research 5 different vehicles you are interested in. • List your results below