Researching an
Automobile
What should I look
for?
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© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
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© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
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© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
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© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
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© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
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© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
Stop to
complete
activity
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
1.16.2.G1
© Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobi...
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Researching an Automobile

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Researching an Automobile

  1. 1. Researching an Automobile What should I look for?
  2. 2. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Transportation  Part of everyone’s life  15 – 20% of an individual’s budget  Automobile is the 2nd most expensive purchase, only after a home
  3. 3. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Want to Buy a Vehicle?  Consumers should plan their vehicle purchase to avoid any costly mistakes  Any large purchases should be planned  Places to purchase a vehicle: • Dealership, private owner, internet
  4. 4. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Planned Buying Process 1. Prioritizing wants 2. Pre-shopping research 3. Fitting the budget 4. Comparison shopping 5. Negotiating 6. Making the decision 7. Evaluating the decision
  5. 5. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Step 1 - Prioritizing Wants  Assess transportation needs and wants • Need: something thought to be a necessity • Want: something unnecessary but desired  Consider all automobile options as wants • Prioritize the wants from low to high priority •Prioritizing wants helps the consumer • Consider costs and benefits of different vehicle options • Consider the “big picture” of the vehicle purchase rather than a specific want (such as heated seats, color, engine size, etc)
  6. 6. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Prioritizing Wants – Questions to Think About  How will the vehicle be used?  Where will the buyer be living?  How will the vehicle be stored or parked?  How much will it be driven?  What options would the buyer like in the vehicle?
  7. 7. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Step 2 – Pre- shopping Research  Research should be based on transportation wants  Complete this before visiting a car dealership or salesman  Helps the buyer to be informed about: • What they are looking for • Vehicles in their price range • Available options
  8. 8. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Ways to Perform the Research  Family & friends • Experiences with different makes and models of different vehicles • Likes, dislikes, and recommendations  Periodicals • Consumer Reports • Federal Citizen Information Center • Kelley Blue Book • Motor Trend • Car and Driver  Access this information at the public library and/or the internet
  9. 9. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Price Research  Price • Base price: vehicle price with standard equipment, no extra options • MSRP: Manufacturer’s suggested retail price • Includes base price, price of options installed by manufacturer, and their transportation charge • Sticker Price • Dealer’s initial asking price
  10. 10. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Price Research continued  Price continued • Determine how much a dealer paid to help decide which vehicles to consider and to negotiate a fair price • Consumer Reports, Kiplinger’s Personal Finance magazine, and Edmund’s New Car Prices • Used cars • Blue book price: dollar value given to the vehicle based on its year and model • Used as a guide for car dealers and banks for pricing trade-ins • Kelley Blue Book
  11. 11. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Vehicle Options Research  General type of vehicle • Car, truck, 2-door, SUV, sporty  Make and model • Ford Taurus, Honda Accord  Safety • Braking and emergency handling, airbags  Reliability • Some specific models have high marks, may be higher priced but will save on repair costs
  12. 12. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Vehicle Options Research continued  Fuel economy • Type of gas used, gas mileage  Power and performance • Driving on highways, steep hills, mountains, snow, muddy roads, or in a city  Comfort and convenience • Size of headroom and legroom, cargo space
  13. 13. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 13 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Vehicle Options Research continued  Insurance • Chosen vehicle affects the price of insurance; obtain a quote for the vehicles being considered  Other options • Power steering and brakes, manual or automatic, air conditioner, rear-window defogger, radio/tape/CD player, type of tires, cruise control, sun roof, heated seats, power door locks and windows, etc.
  14. 14. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 14 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona New vs. Used Research  New Vehicle: • Not pre-owned • Warranty • Manufacturer options • Wide selection • Expensive • Depreciation • Loss in the vehicle’s value due to time and use (greatest cost)  Used Vehicle: • Cost less to buy • Cost less to insure • Avoid rapid deprecation • Wide selection • May offer warranty • Returned leased cars • Have an independent mechanic inspect any used car before purchase
  15. 15. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 15 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Step 3 – Fitting the Budget  “Can I afford it?” • Most important question  Amount the buyer can afford in his/her budget dictates the vehicle price  All costs must be taken into consideration before choosing a vehicle
  16. 16. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 16 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Fitting the Budget continued  Fixed expenses • Depreciation • Insurance costs • Loan payment and interest if financed • Parking fees • Licensing • Registration  Flexible expenses • Maintenance • Gas • Oil • Repairs *Vehicle price is not the only cost involved
  17. 17. Stop to complete activity
  18. 18. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 18 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Step 4 – Comparison Shopping  Comparing services or products to determine the best buy or quality product at a fair price  Allows the consumer to build upon the information learned in the pre-shopping research *As the price of a vehicle increases, consumers are often not buying additional safety, capacity, or power, but instead style and prestige
  19. 19. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 19 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Comparison Shopping continued  Narrow the choices to a few specific makes and models with desired options  Visit the appropriate store to learn more information about each choice to make comparisons • Inquire about price, dealer incentives, financing options, leasing, warranties, and service contracts  Test drive each potential vehicle
  20. 20. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 20 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Comparison Shopping continued  Goal of comparison shopping • Narrow the choice even further to negotiate for the best deal
  21. 21. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 21 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Step 5 - Negotiating  Process of deciding the actual terms of the purchase and agreement between the seller and buyer  Obtain a firm price before discussing any other aspects including a trade-in  Compare prices from different dealers • Let them know you have done your research and whether their price is high
  22. 22. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 22 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Negotiating continued  Keys to all negotiations • Be able to say NO • Take the purchase to another business
  23. 23. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 23 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Step 6 – Making the Decision  The best place to decide on which vehicle to purchase is NOT the showroom where you are around the dealer • Take the information home to compare all options  After making the decision, return to the dealer to close the sale
  24. 24. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 24 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Step 7 – Evaluating the Decision  Think about the things which went well and what did not • This will be helpful the next time a similar purchase is made  If the process was successful and you are happy, compliment the seller  If you have a complaint, make the complaint known to the seller then move to the supervisor if necessary
  25. 25. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 25 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Lemon Laws  Lemon • A vehicle in and out of the repair shop with problems monthly  An estimated new 150,000 vehicles sold each year are lemons. • Money Troubles, 2001, Leonard  All states have enacted lemon laws • Specifics vary state-to-state and are in place to protect consumers
  26. 26. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 26 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Lemon Laws continued  To fall under the lemon law • New vehicle must have a substantial defect which cannot be fixed in a reasonable time • Defect remains unfixed after four repair attempts or the vehicle remains in the repair shop for a total of 30 days  This allows the consumer the right to a refund or a new vehicle
  27. 27. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 27 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Lemon Laws continued  What should you do if you feel you have purchased a lemon? • Contact the state’s attorney general office to request information on the state’s lemon laws and how to use them if they have purchased a lemon
  28. 28. 1.16.2.G1 © Family Economics & Financial Education – Revised December 2004 – Transportation Unit – Researching an Automobile – Slide 28 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Conclusion  Before purchasing a vehicle, follow the planned buying process to avoid a costly mistake 1. Prioritize wants 2. Pre-shopping research 3. Fit the budget 4. Comparison shop 5. Negotiate 6. Make the decision 7. Evaluate the decision

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