Bell Ringer (Day 6) Write half page red to red about the

following statement. Some movies are serious, designed to

make the audience think. Other movies are designed primarily to amuse and entertain. Which type of movie do you prefer? Use specific reasons and examples to support your answer.

Save these to be turned in with your test!

Reminder1.1. Bring paper/pen/pencil and notebookBring paper/pen/pencil and notebook

2.2. Electronics are for instructional use with permission Electronics are for instructional use with permission

3.3. Don’t forget to do daily quizzes on QUIA.COMDon’t forget to do daily quizzes on QUIA.COM

4.4. No Excuses why you don’t take Quizzes 1-6 No Excuses why you don’t take Quizzes 1-6

before test day!! (Quizzes are worth 30% of grade)before test day!! (Quizzes are worth 30% of grade)5.5. Attendance is MANDATORY!! (NO SLEEPING in class)Attendance is MANDATORY!! (NO SLEEPING in class)

6.6. All notes can be found on Harrisonburg’s staff website:All notes can be found on Harrisonburg’s staff website:

http://staff.harrisonburg.k12.va.us/~tbutler/http://staff.harrisonburg.k12.va.us/~tbutler/

7.7. If you are NOT taking notes in class, please be quiet and If you are NOT taking notes in class, please be quiet and ask to use the restroom at the end of class.ask to use the restroom at the end of class.

This is what you are trying to get at the end of class..This is what you are trying to get at the end of class..

Harrisonburg High School

H.C.P.S

36

x

03/06/2012

Your Name Here

“Green Card”

Objectives: (Day 6)

Students will learn the benefits and drawbacks of buying new vs. used cars.

Students will learn about different places to purchase automobiles.

Students will understand the different purchasing methods when it comes to buying a car.

Students will understand the characteristics of an automobile warranty

Related SOL: DE.19

How to Buy a Car How to Buy a Car

Buying A CarBuying A Car

You have to decide whether or not you want to buy a new car or a used car, but…

Buying A CarBuying A Car

…that choice is usually determined by how much you can afford…

Buying A CarBuying A Car

A good estimate to how much your payment will be is to figure $20/month for every $1,000 financed.

And that’s for 5 years or 60 months

Buying A CarBuying A CarExamples: A $10,000 car would

cost $200 a month A $20,000 car would

cost $400 a month A $30,000 car would

cost $600 a month A $40,000 car would

cost $800 a month

That’s EVERY MONTH for 60 months!! Oh, not including insurance, maintenance and don’t forget gas!!

Buying A CarBuying A Car

Now that you have an idea of what you can afford, What do you want??

The The BenefitsBenefits of buying new of buying new

never been in a wreck never been smoked in hasn’t had any past

maintenance reduced future

maintenance warranty coverage get the latest and

greatest features better finance rates

The The DrawbacksDrawbacks of buying new of buying new

Higher costs High depreciation Decreased choices on car lot (but

you can order a car)

**A LE is the middle of line Camry**

The The BenefitsBenefits of buying used of buying used

Lower costs certified pre-owned

programs Avoiding

Depreciation increased choices

on lot

The The DrawbacksDrawbacks of buying used of buying used

You don’t know history of car

Do a lot more research– Ask friends, internet etc.

Could have been smoked in

Could have been wrecked

Higher interest rates May buy “as is”

How to find the history of your carHow to find the history of your car

To find the history of yours, or any car, you can go online to many different websites such as CARFAX.com, cars.com, usedcars.com...etc.

You can also ask the dealership for information regarding your car.

VIN: 1HGED3649KA081343 Year/Make/Model: 1989 HONDA CIVIC DX Body Style: Sedan 4 DR Engine Type: 1.5L L4 FI Manufactured In: UNITED STATES Search Results: 4 records found in our database  

IMPORTANT! The 4 records on this 1989 HONDA CIVIC DX will confirm a clean history or uncover potential problems. Find out by ordering the complete CARFAX Vehicle History Report.

Example from CARFAX.comExample from CARFAX.com

DO NOT WRITE THIS SLIDE!

Places to buy a carPlaces to buy a car

new/used car dealership

websites person-to-person

transactions. – print classifieds

Dealership or a Website

Most of them are required to give a complete and accurate vehicle history report.– Doesn’t mean

that the salesperson won’t lie to you

Person-to-Person Transactions

You can’t always trust person-to-person transactions – it’s easy to lie about the car wasn’t ever in an

accident when it could very easily have been a salvage vehicle.

What To Know Before You GoWhat To Know Before You Go

The first thing that you have to do before going out to buy a car is to check your credit history – Freecreditreport.com– or at your bank

Financing Financing MethodsMethods

Cash Lease Loan

Cash

The simplest way to pay for a car

Avoid paying the interest charges

Loans

Most people do not have enough cash to buy a car outright

Loans are simply an agreement to lend money for the right to charge an interest rate on that money as it is paid back.

Can be 2-7 years

Payment For Your CarPayment For Your Car

Down payment- The amount you pay upfront to lower the amount you have to finance

Annual Percentage Rate (APR)- The percentage of interest that you pay on your car per year

Financing the balance- How to pay for what you still owe on the car you’re buying

Leases Benefits

Can be a great deal… A long-term rental

agreement in which you pay for the right to use a car.

You get a car that you couldn't afford to buy, and you have a low down payment, and slightly lower monthly payments.

Leases Drawbacks

At the end of the lease term:– Drop the car off– you can purchase the car for the

price determined at the beginning of the lease agreement.

• Cash• Refinance balance

May pay expensive penalties:– exceeding the mileage limits of

the lease – Excessive wear and tear on the

car– Ending the lease before it

expires. – And while you lease the car, it is

your legal responsibility.

Types of Car Warranties

You may see these advertised:– 36-months*/36,000-miles – 60 months*/60,000 miles – 7 years*/100,000 miles– 10 years*/ 100,000 miles

Types of Car Warranties

Basic Coverage– (all components other

than normal wear and maintenance items).

Power train Coverage– (engine,

transmission/transaxle, front-wheel-drive system and rear-wheel drive).

VIN NumbersVIN Numbers

The VIN number is your Vehicle Identification Number.

A VIN number is your cars serial number.

Your cars VIN number is located in many places

Tips When Buying a CarTips When Buying a Car

Have the mechanic give the car a full inspection

Avoid “as is” statements

Have your finance and loan approvals ready before you even go to the dealership

Don't discuss the possibility of a trade-in until you get the best possible price for your new car.

•Any market adjustment prices•Taxes-

•VA sales tax•Dealer tax

•DMV fees•Plate fees•Title fees•DMV processing fee

•Dealer processing fees•Bump Stickers!!

Hidden CostsHidden Costs

Wholesale (Dealer or Invoice) Price- What the dealership paid for the car

Retail (MSRP) Price- What the dealership asks for the car

Price DifferencesPrice Differences

How dealerships make money

Sell over invoice Sell extra products Finance through the

dealership Holdback is money

paid to the dealer by the manufacturer when a car is sold.

THE END!