Chapter 28 Cars & the Consumer
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Transcript of Chapter 28 Cars & the Consumer
CHAPTER 28CARS &
THE CONSUMER
What should you look for? Safety
Insurance Institute for Highway Safety Price
Edmunds, Kelly Blue Book, NADA, Carfax
All cars have a VIN (Vehicle Identification Number) Quality
Consumer Reports Warranty
What does it cover? Bumper-to-bumper? Powertrain?
Sex appeal Fuel Economy Fueleconomy.gov
What to expect Federal law requires that all dealerships provide a pamphlet
with their cars to detail safety features of cars No one pays (or should pay) the sticker price for a car
Rebates Incentives Cool stuff in the car Discounts Haggling
The Federal Trade Commission requires that all used car dealers place a “Buyer’s Guide” sticker in the car’s window Does the car come with a warranty?
If not, it must be listed as “As-is. No warranty” Before you buy a car, you should have a mechanic you trust to
look at the car. If the dealer is weary of allowing you to do this, DON’T BUY FROM
THEM Car warranties are important and you must keep up with
scheduled maintenance to keep it valid
Financing Unless you have the money with you at the time of purchase, you
must get your car financed You do NOT have to purchase financing from the dealer you buy the car from
Car dealerships make a ton of money off of this Go to a bank first to get your financing
The type of loan (i.e. how good is it) is determined by The type of car you are loaning
Interest rates are usually lower on new cars Your FICO score
You get loans from Banks Finance Companies (i.e. Quicken Loans Arena) Credit Unions
Two important things to consider for a loan APR Duration of the loan
NEVER TELL A CAR SALESPERSON HOW MUCH YOU CAN AFFORD A MONTH Your concern is a bottom-line price
What the cost of the car is
Insurance is also a key When you buy a car, how much your
insurance is should play a huge role in the decision to buy
Everything from the color of the car, to the make and model year, to the safety/anti-theft features play a role in the price
Before you buy a car, call your insurance agent with the VIN to get a good estimate as to what you will pay
Leasing It’s like renting a car. . .for 2-4 years
You have monthly payments You also have a yearly mileage requirement
Issues of wear and tear become key Lease or buy?
Why lease? Upfront costs are low You get a new car every few years
Why NOT lease If you drive a lot, it could be a problem You always have a car payment
C 2H 9APTERHousing and the Consumer
Housing
A mortgage is a home loan The bank owns the deed (legal receipt) of
the house Usually a 15-30 year mortgage
Tenants (renter) pays the landlord (owner)
Leasing Contract to rent
Specifies the amount to be paid Specifies the term
You should inspect the property before you rent You should also check the contract you are
signing A lease application must be filled out
Name, age, address, place of employment, source of income and previous residences
This is where they check your credit
Types of leases Month-to-month leases are for people who
plan on living in a certain area for a short period of time Almost always more expensive
Tenancy at will Tenant moves in with the understanding that the
lease is for an indefinite period of time Tenant can leave at any time
Tenancy for years Lease is 6 months to a year In this way, the tenant and the landlord are
protected
Negotiations with landlords Knowing the area you will be in really helps out
If there is a high supply of places to rent, but a low demand, the renter is in a good position
If there is a high demand and a low supply, the landlord has the advantage
When you sign a standard lease, the landlord is at an advantage Pay your rent, or get evicted
Make sure you get the payment date in writing Generally, landlords cannot raise rent during the term of the
lease. . .however Sometimes leasing contracts have provisions to raise the rent due
to variable costs i.e. utilities or other maintenance fees
Rent controlled apartments Law limiting the amount of rent you put on a property
Keep it up Most states make laws requiring landlords to maintain
properties to basic living standards Warranty of habitability
Landlord promises to provide a place that is fit for human habitation
Housing codes are minimum standards needed to be upheld for living standards
Tenants must notify the landlord when repairs are due A residence is a residence
You can’t use it as a business “Zoned” for business purposes
Leases can specify the maximum number of tenants allowed
Leases can also specify what is to be done if there are damages to an apartment If damages are committed, it is known as waste