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![Page 1: Personal Finance Objective 6.02-B Students will understand options and practices for meeting transportation needs. 6.02-B “Choosing the Right Vehicle”](https://reader030.fdocuments.us/reader030/viewer/2022032705/56649db45503460f94aa4394/html5/thumbnails/1.jpg)
Personal Finance Objective 6.02-BStudents will understand options and practices for meeting transportation needs.
6.02-B “Choosing the Right Vehicle”
Sourcewww.AAA.com December 2011
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Factors to Consider Before PurchasingDetermine what is affordable for
youEvaluate your driving habitsList needed featuresConsider vehicle depreciation
costsWill you buy New or “new to
you”?
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What Can You Afford?
Value of your trade-inAmount of down payment Budget $ available for
◦Monthly installment payments or◦Monthly lease installment◦Lump sum payment for vehicle
Investment financing optionsInsurance costs
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Evaluate Your Driving Habits
How will vehicle be used?◦What types of trips will be most frequent?
Local Short distance…will Electric car work?
◦How many passengers will vehicle need to carry?
◦How much cargo space is needed? Need trunk to lock Open storage (pickup truck)
◦Will vehicle be mostly on 4 lane highways? Weather/geographic conditions? snow,
mountains, gravel/muddy roads
◦Where will you park at home/work?
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List of Needed FeaturesNeeded or Wanted?
◦Seating◦Cargo space◦Fuel economy◦Commute –Electric- MPG◦Style: 2 door, 4 door, 2WD, 4WD,
sedan, truck, SUV◦Safety features◦Specialty or convenience: GPS, CD
player, DVD player, Sirius radio
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Consider Depreciation Costs Biggest yearly expense for new cars is DEPRECIATION Consider a model that has a track record of holding its value
for longer Research how much models depreciate within the first 5
years
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New or “New to You”?
New Vehicle◦ Higher pricing◦ Possible purchase
incentives-rebates, gas for year bonuses, etc.
◦ Longer & broader warranties
◦ Wider variety of units available
◦ More variety in features◦ Can order “custom”
from factory
Will you buy NEW or NEW to YOU vehicles?Both have Benefits & Detriments
Consumer must weigh options and related costs to make best decision.
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New or “New to You”?
New to You◦ Lower pricing◦ Less buying incentives◦ Warranties more limited◦ Harder to find desired
vehicle & features◦ Less choices widely
available◦ Search longer to find desired
vehicle◦ More maintenance due to
age & prior usage◦ Get inspection to ensure
quality and performance
Will you buy NEW or NEW to YOU vehicles?Both have Benefits & Detriments
Consumer must weigh options and related costs to make best decision.
![Page 9: Personal Finance Objective 6.02-B Students will understand options and practices for meeting transportation needs. 6.02-B “Choosing the Right Vehicle”](https://reader030.fdocuments.us/reader030/viewer/2022032705/56649db45503460f94aa4394/html5/thumbnails/9.jpg)
WARRANTIES & MAINTENANCE
Review Warranty◦ Length ◦ Coverage◦ Limitations
Investigate maintenance costs◦ Check with an auto
repair shop ( a reputable or trusted mechanic) for estimated costs of Fluids-oil changes, etc. Parts-tires, batteries,
etc. Other repair items Overall value of vehicle Check out major
components-engine, 4WD
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INVESTIGATE SAFETY RATINGS
Check with National Highway Traffic Safety Administration (NHTSA)
www.SafeCar.gov Insurance Institute
for Highway Safety (IIHS)
www.IIHS.org/Ratings
# of airbagsVehicle “roll”
factorIf using car seat,
chek out access to vehicle’s LATCH system
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SEEK RECOMMENDATIONSRecommendatio
ns◦ Ask friends◦ Ask family◦ Ask colleagues◦ Ask your
mechanic
Reviews◦ Check webwsites for
expert opinions or reviews
◦ www.AAA.com/autosales
◦ www.AAA.com/Go , click “On New Cars”
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DON’T LIMIT CHOICESDon’t get stuck
on one vehicle that you can’t live without!
Be flexible to get more negotiating room with seller
Check out vehicles that meet your needs