Car Buying

Caveat Emptor

Step One: Decide What’s Important?

What do you need

the car for?

What qualities of the car are most important?

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What kind of vehicle do you want to buy?

Ask yourselfWhat will I use the vehicle for?Towing anything?Driving passengers around?Need a lot of cargo room?How many miles will I be driving?How long will I have the vehicle?

Options

engine sizetransmissioninteriorsafety featuresspecial electronicsconvenience packages some much more

Vehicle Size is Important

Sub-compact carsvery gas efficientless operating costsless protection

in a collisiondo you travel alone?

Compact Cars

gas efficienteasy to maneuverroom for otherslittle protection

in a collisionsome cargo room

Medium Size Car

room for 4 or moregood gas mileagemidsize cargo areamany choices

Full Size Car

comfortable ridelarge trunkUp to 5 passengerspoor gas economyhigh operating costslot of protection

in a collision

SUVs and Pickups

large cargo areacarries many passengerspoor gas economyhigh operating costslot of protection

in a collision

New or Used

List as many advantages and disadvantages you can think of for buying a new car.

Do the same for a used car

Basic Transportation

How much car can you buy?

How much car can you really buy?

Budget Questions

Decide how much you can afford to pay each month. (15%-20% of take home pay)

How much of a down payment do you have?

Buy vs. Lease

Buy: Finance entire amount of auto.

Own car after meeting loan terms.

Lease: Finance purchase price less residual value.

Lesser owns car after expiration of lease.

$$$$$$$$$$$$$$$$$$$$$$$$$$

Purchase Price $ 30,000.00

Down Payment 3,000.00

Finance Amount $27,000.00

(Interest Rate 5%)

Monthly Payments $566.14

Just to Get Started.

Down Payment $3,000.00

Sales Tax 2,225.00

Basic Registration 33.00

Gov’t Services Tax 420.00

Supplemental Gov’t Services Tax 105.00

First Month’s Payment 566.14

Total $6,349.14

Let’s Keep Going

First Year of Ownership.

First Month $6,349.14

11 Monthly Payments 6,227.54

1 Year Min. Insurance 1,200.00

3 Oil Changes 60.00

Gas 1,660.00

Total $15,496.68

The shopping is not over!

Shop for the best financing Zero Down Low APR Delayed Payments Rebates

The Test Drive

If the owner of the car refuses to let you test drive, look for another car.

Test-drive the car/model you want

Plan to drive many cars in the same day

Don’t bring anybody who will distract you

Do not bring your checkbook, your pick slip, or even your trade

Plan your route, preferably near your home

Bring a knowledgeable person you trust

Have the car inspected?

Bring to a mechanic you know and trust. For a fee, they will check the car over for any obvious problems.

What About the Test-Drive?

How Does the Car Feel Getting In and Getting Out?

How Is My Visibility?

How Does the Car Ride, Accelerate, Brake and Handle?

Hear Any Noises?

Any Lights on?

Signs of a Collision?

Everything Work?

Plan the purchase

Decide on the price you want to pay

Make sure you want the car you are buying

Negotiate the purchase

Be Prepared Select the Car to Buy Test Drive Again Set Your Price Set the Value of Your Trade Factor in Your Down payment and Rebate Check on Dealer Financing

Be Sure To

Get any and everything you agreed upon in writing!

Complete the sale

Set priceAgree on the value of the tradeFinalize financingExtended warranty?

What to do next

Don’t park anywhere near others cars

Or maybe get it washed