How to Buy a Used Car.ppt
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How to Buy a Used Car.ppt

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How to Buy a Used Car.ppt How to Buy a Used Car.ppt Presentation Transcript

  • How to Buy a Used Car Presented by Hanjing Tian Sponsored by CSSA, Lehigh •11/19/2004
  • Objectives • Introduce the basic knowledge of car and American automobile industry. • Teach you how to buy a used car in 6 steps • Clarify two popular misunderstandings on Janpanese car
  • There is no safety car, but safety driver Safety features: ABS (anti-lock braking) system, front airbag and side airbag, 4-wheel disc brake, brake-assistant, alloy wheel, traction control, stability control, All-wheel drive
  • Vehicle Manufacturers Charts http://www.autoindustry.co.uk/ Source: OICA.net
  • Who Owns Who? Companies or Manufacturers Brands Cadillac, Buick, Chevrolet, GMC, Hummer, Pontiac GM Saturn, Hyundai, Kia, Isuzu, Subaru, Suzuki, Saab Ford Lincoln, Ford, Mercury, Mazda, Volvo, Jaguar Daimler-Chrysler Mercedes-Benz, Chrysler, Dodge, Jeep TOYOTA LEXUS,TOYOTA,SCION Honda ACURA,HONDA Renault Infinite, Nissan Volkswagen Audi, Volkswagen
  • Modern Auto industry is Highly Inter-cooperated •98% total parts of TOYOTA CAMRY were made in American, while only 65% total parts of Chrysler PT Cruiser were made in American. •Ford focus shares the same platform with Volvo S40 and new Saab 9-2 share the same platform with Subaru impreza •The platform of TOYOTA CAMRY were used in Highlander and LEXUS IS300, while the platform of HONDA CIVIC were used in CRV •The same car was labeled as different company and under different brand Ford Taurus = Mercury sable Chevelot Prizm = Toyota corolla (before 1997) Ford escort = Mazda protégé (before 2002) Chevelot cavalier = Pontiac sunfire Pontiac vibe = Toyota matrix
  • The Structure of Modern Car
  • Internal-Combustion Engine (the heart of a car) Displacement: 1.7L-2.5L 2.7L-4.3L (for V6) Subaru Stability: Porsche MPG: Bigger Price: better Comfort ability:
  • Automatic Transmission System (the kneel of a car) If anything is wrong here, please prepare at least $1000.00
  • Brakes and tires (the foot of a car) This is only part which can KILL you, so take care!!!! Check the brake thickness and tire pressure FRENQUENTLY. ABS system can stop your car under bad weather condition. All-season tires are MUST in the winter of Lehigh valley.
  • Other Important Function Systems Chassis and suspension: the bone of a car FWD, RWD, AWD, 4X4 Fuel system: the food and digestion of a car, oil tank, fuel pump, exhaust converter and muffler Electric system: the brain of a car system-controlling computer, generator, battery, lights and electric wires and parts Cooling system: the skin of a car radiators, A/C, fan Air system: the lung of a car air filter, air pump (turbo engine only)
  • Classes of car: Shape 1. Passenger car compact midsize full size GM cavalier/sunfire malibu/centry impala FORD escort/focus taurus/sable crown victoria TOYOTA corrola camry avalon Honda civic accord x Nissan sentra altima maxima 2. SUV such as Pontiac vibe/Ford escape/ Toyota RAV4/Honda CRV 3. Minivan such as Chrysler town & country, Toyota sienna and Honda odyssey
  • Three Approaches to Buy Your First Car • Cheap guy: <$2000 for one-two years To study driving and repairing ability, worry about the car- stalked, junk this car and buy a new car later • Middle way: $3000-6000 for three-five years Still need to study repairing ability, worry a little about car- stalked, sell this car cheaply and buy a new car after graduation • Enjoying life: $8000-11000 for four-five years (Hyundai Accent or Elantra, Chevy Aveo) Under-warranty and worry-free, sell this car after graduation at about $4000-5000
  • The Advantage of Buying a Used Car • For newcomer, limited budget and poor credit record make it nearly impossible to afford a new car. • The supply of used cars has increased due to heavy incentives and the number of two and three-year-old lease cars available in recent years.
  • Disadvantages of Used Cars • Some used cars have serious hidden defects with limited or no warranty coverage • It is sometimes difficult to determine whether the car was maintained properly by its previous owner • The used car may not have all the desirable safety or technical features of a new car • the selection of models, equipment, and colors may be limited
  • Step 1: Do your homework as much as possible • How much can you afford? • What type of vehicle do you want? Sedan, wagon, SUV and minivan • When will you buy? • Questions and negotiations: newcomers are not good at speak car- related term in English
  • Step 2. Where to get car-buying information • Website: www.lehigh.edu/for sales www.cars.com, www.edmunds.com • Paper media Morning call and other local papers Free brochure in most food market, such as wawa, Giant • Private sales: graduate students and staffs • Dealers and rental car companies
  • Step 3. Pricing a Used Car from www.kbb.com • Kelley Blue Book Private Party Value The value of a used vehicle in a transaction between two consumers. • Kelley Blue Book Trade-In Value The value you may expect to be offered by a dealer when trading in your own used vehicle.
  • Step 4. Understanding car history • Where is VIN: (vehicle identification number) It is commonly under the windshield of driver’s side “1” for U.S. “2” for Canada, “3” for Mexico, “J” for Japan • Checking the car history from www.carfax.com, (free in dealer’s shop) • Production company, place and date • Owners sequence and deal time • Collision and flooding information It just tell you what has happened, but can not tell you what has not happened
  • Step 5. Mechanical check • From car-repairing shop: $50.00 each good boys: Strauss, AutoZone bad boys: Pepboys, Firestone • Asking your friends to help you Respect their opinions and Do not complain later • Buying the car under warranties from dealers or manufacturers.
  • Step 6. Transfer Legal Documents and Car Insurance AAA East Bethlehem office 1520 Stefko Blvd,Bethlehem, PA 18017 Tel: 610-867-7502 Office closed in Saturday afternoon and Sunday Purchasing car insurance Car insurance is based on the owner, not car, so take care of your PERSONAL car. Title and license plate transfer process Tax payment Join AAA Free roadside assistance, free map and guidebook
  • Most Japanese Cars get high score in crash test, but not in real world accident www.iihs.org
  • Higher Resale Values or Lower Original Price all data from cars.com Ford Taurus outdoor Price: $17200 16000 3.0LV6 Absolute deprication value (U.S.Dollar) 1.0 14000 TOYOTA CAMRY 0.8 12000 outdoor price $18300 2.4L I4 deprication rate 10000 0.6 8000 6000 0.4 Toyota camry 4000 0.2 2000 Ford Taurus 0 0.0 2002 2000 1998 1996 1994 1992 1990 1988 1986 2002 2000 1998 1996 1994 1992 1990 Year year Toyota Camry has almost same deprecation rate as Ford Taurus in first 6 years. Toyota Camry cost you more in first 10 years than Ford Taurus.
  • Conclusion • Modern car is very complex and sophisticated industrial product • CSSA recommend any safety features which you can afford • CSSA recommend your fair-eyes on Japanese car and American car. • Car-buying process is difficult and boring, but you’ll definitely enjoy your results