Chapter 23: Buying and Caring for a Vehicle

Lesson 23.1 Buying a vehicleI. Steps in a car buying process

a. Identify your needs and wantsWhat do you need to do with your car?Will you drive a lot of miles?Do you plan to haul a lot of people?Will you take the car off road?What features would you like to have if you could afford them?

b. Determine what you can affordMonthly payments of no more than 20% of the money you have left after paying all your regular monthly expenses

c. Identify and research your choicesOnline magazines: Consumers Reports, Edmunds.com, Cars and Drivers

d. Decide whether to buy new or usedNew car much more expensive than a used carA new car can lose as much as 20% of its value as you drive it off the lot

e. Get credit approval• Get a pre-approval before negotiating a price for a car by

going to a bank or credit unionf. Research insurance rates

• Call you insurance agent before purchasing/leasing a vehicleg. Search for available vehiclesh. Test drive each vehiclei. Check the history of a used vehicle

• VIN number to research history of a vehicle • www.carfax.com for vehicle history. Cost $20-25 a vehicle

j. Get the vehicle checked mechanically• Vehicle inspection may cost $150

k. Determine a fair price• If buying a used car: look at Kelley Blue Book • For a new car check the sticker price

l. Negotiate the price• If there is a trade in, negotiate a price for the new car first,

then negotiate a price for the trade inm. Dealer add-ons

II. Financing your car– Financial institutions

• Banks, credit unions, and insurance companies offer car loans for 36, 48, 60, or 72 months

– Car dealersIII. Leasing a car

– In 2003, more than 1/3 of all cars and trucks were leased rather than sold

IV. Consumer protection for car buyers– Lemon laws

• The car is a lemon is if in the first year of ownership or 12,000 miles (a) the car has been to the dealer 4 unsuccessful attempts to repair the same defect (b) the car has been out of service for a total of at least 30 days

• Lemon laws can get a new car or your money back– The FTC used car rule

• This requires used-car dealers to notify the consumer ahead of purchase about who will be responsible for paying for certain repairs if they occur after the sale

• On the sticker if the box “As Is” is checked then the buyer must pay for all repair costs. If the box “Warranty” is checked then the dealer will repair the items listed under warranty.

Lesson 23.2 Maintaining your vehicleI. Cost of operating a car

– Gas and oil– Depreciation– Registration and title

• You pay title fee and sales taxes only at the time you buy the vehicle

• You must pay a license tag fee every year and pay for emissions testing in some states every two years

– Maintenance and repairs• Change the oil every few thousand miles, major engine tune

up every 20,000-30,000 miles, and perform other maintenance at scheduled intervals

• Unscheduled repairs are flat tires, broken belts, leaky hoses• When your car gets older repair costs will increase: fan

belts, hoses, battery, muffler, alternator• New tires can range from $50-$200 EACH

– Accessories• Some add-ons could be snow tires, seat covers, wheel

covers, striping, alarm systems, sound systems

II. Extending the life of your car– Maintain fluid levels

• Newer cars can run 7,000 miles between oil changes.• Experts advise every 3,000 or every 3 months which ever comes first for oil changes• Oil changes can cost between $20-$35• Regular check the other fluids such as transmission, power steering, and brakes

– Perform routine maintenance– Keep your car in the garage

• Protects from theft, vandalism, and weather.– Preserve the exterior

• Wash your car regularly• Wax the paint twice a year

– Preserve the interior• Cloth is more durable than vinyl, spills and dirt are harder to clean with cloth• Vinyl can crack or tear in extreme heat or cold• Leather holds up the best, as long as it is regularly cleaned

– Follow wise driving habits