Purchasing a Vehicle

Can you name 7 places Can you name 7 places that you can purchase a that you can purchase a car from?car from?

1. By Owner

2. Used car dealership

3. New Car Dealership

4. Auction

5. Rent-A Car

6. Bank

7. E-bay

Rav 4

Car Max/ Car Max/ Vehix.comVehix.com

Used car dealerUsed car dealerNo bargainingNo bargainingmay have may have warrantywarranty

By OwnerBy OwnerDrive it firstDrive it firstLess expensiveLess expensivewhen you drive when you drive away, you are away, you are responsibleresponsibleusually no warrantyusually no warranty

New Car DealerNew Car DealerMost Most ExpensiveExpensiveGo by Go by reputationreputationMost reliableMost reliableBicker priceBicker pricewarrantywarranty

AuctionCheapestCheapestGov. Gov. AgenciesAgenciesPolicePoliceNo warrantyNo warranty

Rent-A-CarHertzHertzAvisAvisAlamoAlamoBeen Serviced properlyBeen Serviced properly

BankBankPeople who People who can’t pay for can’t pay for the car have it the car have it repossessedrepossessed

vehix.com

New vs. Used CarsWhat happens when you drive a What happens when you drive a new

car off the lot?car off the lot?• Depreciation-Depreciation-

What is this?What is this?• The value of the car drops the The value of the car drops the

minute you drive off the lotminute you drive off the lot• Depreciates 15-20% each yearDepreciates 15-20% each year• Calculate the depreciation of a Calculate the depreciation of a

$12,000 car after 1 year$12,000 car after 1 year $ 12,000 $12,000$ 12,000 $12,000X .15 -$1,800X .15 -$1,800 $1,800 Value $10,200$1,800 Value $10,200

When buying a When buying a used car, how can car, how can you find out what it is worth?you find out what it is worth?

• ClassifiedsClassifieds• Auto Trader MagazinesAuto Trader Magazines• Kelly Blue Book-average market Kelly Blue Book-average market

value of a car- depends on the value of a car- depends on the condition of the car condition of the car (excellent/good/fair/poor)(excellent/good/fair/poor)

• Kelley Blue Book - New Car Pricing and Used Car Values

Now you’ve decided on buying a New or Used car, you’ve decided on where to

shop for the car,Now what are you looking for in a car?

Needs- Standard Equipment• Consider size of vehicleConsider size of vehicle• Manual or AutomaticManual or Automatic• Fuel Economy****Fuel Economy****• Safety Standards: Safety Standards: crash tests

Wants- Optional Features/Specifications/ Technical Specs• HD Radio/MP3 accessoriesHD Radio/MP3 accessories• sun roofsun roof• leather seatsleather seats• GPSGPS• Remote entry/starterRemote entry/starter

Price of a Vehicle• New Cars

Invoice Price: How much the dealer pays to get the car MSRP (Manufacturers Suggested Retail Price): How much

the dealer will sell the car to you for. Usually higher than the invoice price.

• Used Cars Trade in Value: Trade-in Value is what consumers can

expect to receive from a dealer for a trade-in vehicle. Suggested Retail Value: Representative of dealers' asking

prices and is the starting point for negotiation between a consumer and a dealer.

FACTS ABOUT FUEL FACTS ABOUT FUEL EFFICIENCYEFFICIENCY

CONTROL YOUR SPEEDCONTROL YOUR SPEED PROPER TIRE INFLATION FOR EVERY 5 MPH INCREASE FOR EVERY 5 MPH INCREASE

IN SPEED YOUR CAR GETS IN SPEED YOUR CAR GETS 1.5 1.5 FEWER MILES PER GALLONFEWER MILES PER GALLON

COAST TO A STOP AND COAST TO A STOP AND MODERATELY ACCELERATEMODERATELY ACCELERATE

VEHICLE DESIGN-MORE VEHICLE DESIGN-MORE STREAMLINEDSTREAMLINED

SMALLER ENGINESSMALLER ENGINES

Hybrid Cars- What are they?

• Gas and Electric Car• Better gas mileage in CITY

driving• Recharge during braking

and coasting• $5,000 - $10,000

thousand more than regular cars

CALCULATING MILES PER CALCULATING MILES PER GALLON (mpg)GALLON (mpg)

1.1. Fill up your tankFill up your tank

2.2. Record the ODOMETER readingRecord the ODOMETER reading

3.3. Drive until you have ½ a tank of fuelDrive until you have ½ a tank of fuel

4.4. Refill tank and record ODOMETER reading Refill tank and record ODOMETER reading and # of gallons used to fill tankand # of gallons used to fill tank

5.5. Subtract first odometer reading from the Subtract first odometer reading from the second reading and divide by the number second reading and divide by the number of gallons needed to fill the tankof gallons needed to fill the tank

6.6. The result is the number of miles per The result is the number of miles per gallongallon

MPGMPGODOMETER READING #1: 12, 889 MILESODOMETER READING #1: 12, 889 MILES

ODOMETER READING #2: 13,101 MILESODOMETER READING #2: 13,101 MILES

# OF GALLONS NEEDED TO FILL: # OF GALLONS NEEDED TO FILL: 12 gal12 gal

13, 10113, 101

-12, 889-12, 889

212 MILES DRIVEN212 MILES DRIVEN

212 miles / 12 gal = 17.66 mpg212 miles / 12 gal = 17.66 mpg

How many (MPG) does this Grand Am get?How many (MPG) does this Grand Am get?

11stst odometer reading = 45,608 miles odometer reading = 45,608 miles

22ndnd odometer reading =45,828 miles odometer reading =45,828 miles

# gallons to fill tank = 10 gallons# gallons to fill tank = 10 gallons

______________mpg______________mpg

How many (MPG) does this Dodge Durango truck get?1st odometer reading = 45, 6082nd odometer reading = 45,752# of gallons to fill tank = 12 gallons______________mpg

Which automobile is more fuel efficient?____________________Why do you think this is true?

22

12

Grand AM

Responsibilities of Maintaining Your Car

Monthly Expenses• Monthly Car PaymentMonthly Car Payment• GasGas• Insurance PremiumInsurance Premium• IPassIPass• ParkingParking

Yearly Expenses• Village StickerVillage Sticker• License Plate Renewal License Plate Renewal

StickerSticker• Oil Change- 4x yearOil Change- 4x year• Tires, brakes, light Tires, brakes, light

bulbs, tune ups, etc.bulbs, tune ups, etc.

Buying a Car Project 10 points

• Use Yahoo Autos, MSN autos, Vehix.com, carmax.com to research a NEW car

• Research:– price– safety– fuel efficiency– optional features– Dealerships

• Find the trade in value and the suggested retail value of a used car using the online Kelley Blue Book

• www.kbb.com• MPG – fuel efficiency equations • Provide a picture of the vehicle

CR A- DUE 12/8

CR B – Due 12/9

2010 Dodge Challenger RT

• 22• MPG City• 14

•PKG: 22X•ABS Brakes•Air Conditioning•AM/FM Stereo•Automatic Transmission•CD Audio•Cruise Control•Leather Seats•Overhead Airbags•Power Locks•Power Mirrors•Power Windows•Rear Defroster•Satellite Radio Ready•Side AirbagsTraction ControlMPG HWY22MPG City14

Transmission=AutomaticDrive2WDEngine6.1L engineCylinders8 cylinders

•TransmissionAutomatic•Drive2WD•Engine6.1L engine•Cylinders8 cylinders

$

$41,657.00Invoice

Fair Purchase Price  | Add options to update your price $43,294.00

• Cost to own•