6.02 c perf-choosing_right_vehicle

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6.02 c perf-choosing_right_vehicle

  1. 1. BStudents will understand optionsand practices for meetingtransportation needs.6.02-B “Choosing the RightVehicle” Source www.AAA.com December 2011
  2. 2. Factors to Consider BeforePurchasing Determine what is affordable for you Evaluate your driving habits List needed features Consider vehicle depreciation costs Will you buy New or “new to you”?
  3. 3. What Can YouAfford?  Value of your trade-in  Amount of down payment  Budget $ available for ◦ Monthly installment payments or ◦ Monthly lease installment ◦ Lump sum payment for vehicle  Investment financing options  Insurance costs
  4. 4. Evaluate Your DrivingHabits  How will vehicle be used? ◦ What types of trips will be most frequent?  Local Short distance…will Electric car work? ◦ How many passengers will vehicle need to carry? ◦ How much cargo space is needed?  Need trunk to lock  Open storage (pickup truck) ◦ Will vehicle be mostly on 4 lane highways?  Weather/geographic conditions? snow, mountains, gravel/muddy roads ◦ Where will you park at home/work?
  5. 5. List of Needed Features Needed or Wanted? ◦ Seating ◦ Cargo space ◦ Fuel economy ◦ Commute –Electric- MPG ◦ Style: 2 door, 4 door, 2WD, 4WD, sedan, truck, SUV ◦ Safety features ◦ Specialty or convenience: GPS, CD player, DVD player, Sirius radio
  6. 6. Consider Depreciation Costs Biggest yearly expense for new cars is DEPRECIATION Consider a model that has a track record of holding its value for longer Research how much models depreciate within the first 5 years
  7. 7. New or “New to You”? Will you buy NEW or NEW to YOU vehicles? Both have Benefits & Detriments Consumer must weigh options and related costs to make best decision. New Vehicle ◦ Higher pricing ◦ Possible purchase incentives-rebates, gas for year bonuses, etc. ◦ Longer & broader warranties ◦ Wider variety of units available ◦ More variety in features ◦ Can order “custom” from factory
  8. 8. New or “New to You”? Will you buy NEW or NEW to YOU vehicles? Both have Benefits & DetrimentsConsumer must weigh options and related costs to make best decision.  New to You ◦ Lower pricing ◦ Less buying incentives ◦ Warranties more limited ◦ Harder to find desired vehicle & features ◦ Less choices widely available ◦ Search longer to find desired vehicle ◦ More maintenance due to age & prior usage ◦ Get inspection to ensure quality and performance
  9. 9. WARRANTIES &MAINTENANCE Review Warranty  Investigate ◦ Length maintenance costs ◦ Coverage ◦ Check with an auto ◦ Limitations repair shop ( a reputable or trusted mechanic) for estimated costs of  Fluids-oil changes, etc.  Parts-tires, batteries, etc.  Other repair items  Overall value of vehicle  Check out major components-engine, 4WD
  10. 10. INVESTIGATE SAFETY RATINGS Check with National Highway Traffic Safety Administration (NHTSA) www.SafeCar.gov  # of airbags Insurance Institute for  Vehicle “roll” factor Highway Safety (IIHS)  If using car seat, www.IIHS.org/Ratings chek out access to vehicle’s LATCH system
  11. 11. SEEK RECOMMENDATIONS Recommendations  Reviews ◦ Check webwsites for ◦ Ask friends expert opinions or reviews ◦ Ask family ◦ www.AAA.com/autosales ◦ Ask colleagues ◦ www.AAA.com/Go , click ◦ Ask your mechanic “On New Cars”
  12. 12. DON’T LIMIT CHOICES Don’t get stuck on one vehicle that you can’t live without! Be flexible to get more negotiating room with seller Check out vehicles that meet your needs

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