EPF.10f Demonstrate comparison shopping skillsEPF.11a Compare the costs and benefits of purchasing vs. leasing a vehicle EPF.11f Evaluate discretionary spending decisions
Comparison shopping provides information to help consumersobtain the best quality for the best price.
What are some of the considerationsto be taken when comparisonshopping? • value • time • convenience • dollar costs • payment options • negotiations of prices and terms • the consequences of conspicuous consumption • opportunity cost • costs and benefits.
There are costs and benefits to purchasing a vehicle and costsand benefits to leasing a vehicle.
What are the steps in purchasing or leasinga vehicle?1. Consumers should identify several alternative vehicles, including new and used.2. Consumers should gather information and test-drive multiple vehicles.3. Consumers should compare each alternative to the criteria established to determine which vehicles best meet them, keeping in mind that not all criteria are equally important.
What are the costs and benefits ofpurchasing vs. leasing a vehicle?Considerations in purchasing or leasing a vehicle may include: performance safety odometer mileage average miles driven annually fuel consumption size appearance price/payment limit insurance costs, taxes, and maintenance options/features warranty depreciation and resale.
What are subjective and objective sources ofpurchase and lease information? Information should include both: subjective resources advertisements sales representatives consumer reviews objective resources statistically based research published consumer data – ex. Consumer Reports
Consumers should weigh costs and benefits to prioritizediscretionary spending decisions.
What is discretionary spending? Discretionary spending is spending for goods and services beyond the essentials of food, shelter, and clothing. Discretionary spending allows consumers freedom of choice in what to purchase and how much to spend on such things as education, health care, entertainment, transportation, and communication technology.
What tools can consumers use toevaluate discretionary spendingdecisions? Consumers can weigh costs and benefits of alternative spending choices. Consumers can use decision models to clarify choices. Consumers can consider saving as an alternative to current spending.