buying a car
DESCRIPTION
Buying a car. Ms. Perez. Bell ringer. Pick and respond to one: What are the benefits of owning a car? What are some uses for a car? What are some reasons people would and would not own a car? . Sticker Price. Manufacturers list price IS the sticker price the FINAL price on the car?. - PowerPoint PPT PresentationTRANSCRIPT
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Buying a car
Ms. Perez
+Bell ringer
Pick and respond to one: What are the benefits of owning a car? What are some uses for a car? What are some reasons people would and would not
own a car?
+Sticker Price
Manufacturers list price
IS the sticker price the FINAL price on the car?
+NO!!!!
Example in a $20,000 dollar car, the invoice price (which is what the dealership pays) is about $15,000-$3000.
What does this mean?
+Where can you buy a car?
+Where can you buy a car?
New-Car dealerships Used-car dealerships Private parties
Newspapers, online, driving through town
+What are some things that you need to be careful of when you buy a car?
+On-lot inspection
Engine leaks Look under car for leaks of the oil, coolant or transmission
Exterior panels Rusk
Interior panels For water damage/signs of leaking
Tires Tire treads Having to get new tires isn’t a deal breaker BUT uneven wear could
reveal a more serious car problem
Odometer Tells you the mileage of the car
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http://www.youtube.com/watch?v=NHIfyhDzZ8o
+Pick the BEST
Go to each station and pick out the best choice in cars.
+How can I afford a car?
+Loans and Financing
Credit Unions Banks Car Dealerships Should you get a loan before or after you decide on a
car?
+Payments
Down payment The higher the down payment the _________ the monthly
payments
Monthly Payments How much you pay monthly Depends on the repayment period
+Price points
Private sale price The price you could expect to get for this car if you sold it
yourself to another person
Trade-in price What the dealer would offer you in trade value
Retail price What you would expect to pay for this car at a used
dealership
Why do you think that there are different price points?
+How do you find how much you should pay with your car?
+Kelley Blue Book
Gives car value BASED ON Mileage Location Year Make Model Manufacturer’s Suggested Retail Price Dealers cost
+Given one of four ratings
Excellent Looks new Excellent mechanical condition Never had any paint or body work
+Good
Free of major defects No major mechanical issues Paint, body, and interior Little to no rust Most consumer owed vehicles fall into this category
+Fair
Some mechanical or cosmetic defects Needs servicing but is reasonable Paint, body, and or interior need work from a
professional Tires may need to be replaces Repairable rust repairs
+Poor
Severe mechanical and/or medical cosmetic defects Poor running condition Problems that can’t be readily fixed Mileage is poor
+What do you think the most important factor to buying a car is?
+Financing a car
How do you figure out the ACRUAL cost of a car? How do you figure out what your monthly payments
are?
+Steps to figuring out the actual cost in financing a car Lets say the car costs $13,000 You get a loan that is an interest of 10.25% for 4.5
years What should you do first?
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Take the interest (10.25) and move the decimal over by 2.
Example .1025
Take that number and multiple it by the car cost.
Example .1025 X 13,000=1332.50, this is the COST of interest.
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Add the cost of interest to the original car cost. Example $14, 332.50, this number is the TRUE cost of
your car.
Then what?
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Next take the length in years multiplied by the # of months in a year.
Example: 4.5X12=54-This is the # of payments you will make
Take the TRUE cost of your car and divide by the # of payments you will make
Example: 14,332.5/54=$265. 42, this is your monthly payment
+Table races
The car cost on the lot is $20,000 dollars The loan is 7% interest for 5.5 years What is the TOTAL cost of the car? What are the monthly payments?
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.07 X 20,000= 14,000 14,000+20.000=21,400 5.5 X 12=66 21,400/66= 324.24
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You car costs $50.000 Your interest is 15% for 4 years What is the TOTAL cost of the car? What are the monthly payments?
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.15 X 50,000= 7,500 50,000 + 7,500= 57,500 4 X 12= 48 57,000/48= $1,197.92
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The car costs $75,000 dollars The interest rate is 8% for the next 7 years What is the actual cost of the car? What are the monthly payments?
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.07 X 75,000= 5250 75,000 + 5,250= $80,250 7 X 12=84 80,250/84= 955.34
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The car costs $10,000 dollars The interest rate is 10% for the next 3 years What is the total cost of the car? What are the monthly payments?
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.1 X 10,000= 1,000 1,000 + 10,000=11,000 3 X 12=36 11,000/36= 305.56
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The cost of the car is $45,000 The interest rate is 9% for the next 5 years What is the total cost of the car? What are the monthly payments?
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45,000 X .09= 4,050 4,050 + 45,000= 49, 050 5 X 12= 60 49.050/60= 817.50
+TOTD:
Does the length of the payments affect the price of the car? Why or why not?