BStudents will understand optionsand practices for meetingtransportation needs.6.02-B “Choosing the RightVehicle” Source www.AAA.com December 2011
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”?
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
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?
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
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
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
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
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
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
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”
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