Chapter 16Chapter 16
Buying and Owning a Vehicle
16.1 Buying a Vehicle16.1 Buying a VehiclePage 336Page 336
Can You Afford to Own a Vehicle?Purchase PriceDepreciation
FinancingOther Costs
What Kind of Vehicle Should You Buy?What Kind of Vehicle Should You Buy?Page 336Page 336
What will I use the car for?Do I need certain passenger and cargo capacities? Will I need to tow anything?
How many miles will I drive each year?Will I use the vehicle more for short trips or
long trips?How long will I expect to keep the vehicle?
Vehicle Size-Page 337Vehicle Size-Page 337
What to consider about vehicle size? Smaller, lighter vehicle usually gets better gas mileage but does not offer as much protection in a
collision as a larger, heavier vehicle. Smaller vehicles are easier to maneuver than
larger vehicles, especially when parking A larger vehicle provides a more comfortable ride
but is usually more costly to operate. A larger vehicle has a greater capacity for
passengers and parcels.
Optional Equipment-Page 337Optional Equipment-Page 337
What is optional equipment?Be aware, optional equipment will add to
the cost of the vehicle.
Leasing a Vehicle-Page 338Leasing a Vehicle-Page 338
What does it mean to lease a vehicle? At end of lease, you must choose one of the
following three options: Return the vehicle and lease another one.
Purchase the vehicle at a cost determined at the start of your lease.
Return the vehicle with no obligations to either lease another vehicle or purchase the vehicle you
returned.
Leasing Cont.-Page 338Leasing Cont.-Page 338
Leasing is not for everyone. Most lease agreements limit how many miles you can put on the vehicle. Extra miles are likely to cost you an additional charge.
Buying a used Vehicle-Page 339Buying a used Vehicle-Page 339
Warranty
How Much Should You Pay-Page 339How Much Should You Pay-Page 339
Blue-Book Prices
Choosing a Used Vehicle-Page 339Choosing a Used Vehicle-Page 339
Good mechanical condition.Was it ever involved in a collision, or needs
repair.When possible, talk to previous owner
about condition of vehicle and previous maintenance service that has be done on
vehicle.
Choosing Used Vehicle Cont.-Choosing Used Vehicle Cont.-Page 339-341Page 339-341
Outside and inside checks.Test Drive-When test driving a vehicle, drive vehicle on a rough road at 25 mph and
TURN RADIO OFF. The vehicle should not rattle or feel unsafe.
Have vehicle inspected.
16.2 Insuring a Vehicle-Page 34216.2 Insuring a Vehicle-Page 342
Financial responsibility lawWhat is it?
What is Vehicle Insurance-Page 342What is Vehicle Insurance-Page 342
Premium—A specified amount of money you pay for coverage over a specified
period of time, to the company.
Liability Insurance-Page 342Liability Insurance-Page 342
What is liability insurance?Liability insurance is the most important
type of insurance to have.Protects the driver who caused the collision.
Bodily-Injury Insurance-Page 342Bodily-Injury Insurance-Page 342
What is bodily insurance?Insurance that covers the driver who is at
fault against claims.
Property-Damage Insurance-Page 342Property-Damage Insurance-Page 342
What is property-damage insurance?Insurance that protects the driver who is at
fault against claims for damages to another person’s property, up to specified limits.
Medical Payment Insurance-Page 342Medical Payment Insurance-Page 342
What is medical payment insurance?Insurance that pays medical expenses for bodily injuries sustained by occupants in an
insured vehicle.
No-Fault Insurance-Page 342-344No-Fault Insurance-Page 342-344
What is no-fault insurance?Insurance that is recovered from your own
insurance company because of long delays in litigation no matter who is at fault.
Chart on Page 343Chart on Page 343
Collision Insurance-Drop after 7-10 years for new or expensive cars of ownership or
when value of car no justifies cost of coverages.
Comprehensive Insurance-Drop after 7-10 years of ownership for new or expensive
cars.
Collision Insurance-Page 344Collision Insurance-Page 344
What is collision insurance?Insurance that covers you if you are at fault
in a collision, or not able to collect from the person who is at fault.
What is a deductible?The amount you agree to pay towards the
repair or replacement of the vehicle.
Comprehensive Insurance-Page 344Comprehensive Insurance-Page 344
What is comprehensive insurance?Insurance that for pay for the replacement or repair of your vehicle if it is damaged for
some reason other than a collision.
Uninsured and Underinsured Uninsured and Underinsured Insurance-Page 344Insurance-Page 344What is uninsured insurance?
Insurance that protects you if you are struck by another vehicle whose driver has no
insurance.What is underinsured insurance?
Your insurance company will pay any costs that exceeds what the other person’s
company will pay as a result of a collision.
Insurance Rates-Page 344Insurance Rates-Page 344Factors that determine what you pay for Factors that determine what you pay for
InsuranceInsurance Driving Record
Age Miles Driven Driver Gender Martial Status
Type of Vehicle Where Driver Lives
Driver’s Claim Record
Reduced Premiums-Page 346Reduced Premiums-Page 346
Good grades in school and in some cases drivers who have completed a driver
education course.No claims or convictions for three years.
Multiple vehicles insured under same policy.
Vehicles with certain safety features like airbags and antitheft devices.
Assigned-Risk Insurance-Page 346Assigned-Risk Insurance-Page 346
What is assigned-risk insurance?Insurance provides bodily injury and
property damage liability coverage to high-risk drivers for a much higher premium.
Must drive violation free several years before can qualify for standard insurance.
16.3 Environmental Concerns-16.3 Environmental Concerns-Page 347Page 347
What are CFC’sCFC stand for chlorinated fluorocarbon.CFC’s are a freon gas located in the air
conditioners units of vehicles.CFC’s are effective in cooling air, but when
freon is released into the atmosphere, they break down the atmosphere’s ozone layer.
Mass Transportation-Page 349Mass Transportation-Page 349
Mass transportation is also known as mass transit.
What are some forms of mass transportation?
Car pooling or van pooling.
Alternative-Fueled Vehicles-Page Alternative-Fueled Vehicles-Page 350350
What is an example of an alternative- fueled vehicle?
Solar-powered vehicles.Capture light from the sun and transforms it
into electrical power.
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