buying a car: the need to know doug martin, taylor meyer, and matt spanovich march 6, 2012
TRANSCRIPT
![Page 1: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/1.jpg)
Buying a Car: The Need to KnowDoug Martin, Taylor Meyer, and Matt SpanovichMarch 6, 2012
![Page 2: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/2.jpg)
Taylor Meyer
Selecting the Appropriate Vehicle
![Page 3: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/3.jpg)
Recognize the Need
• Purpose• School• Job• Parents had lent you a car• Family
• New Car vs. Repair
![Page 4: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/4.jpg)
The Car to Fit Your Lifestyle
• Work involving construction, farming, transporting materials, or driving over rough terrain
• Truck• Jeep• Land Rover• Hummer
![Page 5: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/5.jpg)
The Mid-Size Vehicle
• Consider if one has a large family, provides carpooling or other transportation, or if one is a small business owner
• Minivan• SUV• Full Size Van
![Page 6: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/6.jpg)
The Car
• Ideal for the small family, business travel, the desire for a fast vehicle, look of the car, or better handling and gas mileage
• Sedan• Luxury Car• Sports Car
![Page 7: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/7.jpg)
Fuel Efficiency
• Smart Car• Fiat• Hybrid• Car• SUV
![Page 8: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/8.jpg)
Matthew Spanovich
The Budget
![Page 9: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/9.jpg)
Personal Finance
• Examine one’s personal financial position
• Calculate expenses• Gasoline• Unexpected car
maintenance
• Utilize financial calculators to determine budget and price range
![Page 10: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/10.jpg)
Taylor Meyer
Researching the Market
![Page 11: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/11.jpg)
Research
• Car in Mind• Internet• Research the Brand• Websites• Kelley Blue Book• Consumer Reports• Car and Drive• Auto Zone
• CarFax
![Page 12: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/12.jpg)
Research
• Print Source• In-Depth Analysis• Creditable Sources
• Quality Sources include:• Consumer Report• Car and Driver• Motor Trend• Auto Guide• Sunday Newspaper
![Page 13: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/13.jpg)
Other Forms of Research
• In-Person Research• Dealerships’ Deals• Feel out the Car• Ask for the CarFax• Recall History
![Page 14: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/14.jpg)
Doug Martin
Dealing with the Dealership
![Page 15: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/15.jpg)
Those TV Commercials
![Page 16: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/16.jpg)
Before the Dealership
• Research, Research, Research• Kelley Blue Book
• Get financed before you shop
![Page 17: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/17.jpg)
Walking into the Dealership
• You are the ultimate deal breaker• Sticker price vs. Price you should pay• NEVER impulse buy
![Page 18: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/18.jpg)
Showroom Anxiety
• Bring someone with you• “Forget” payment options• Make the decision over multiple days, even
weeks
![Page 19: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/19.jpg)
The Test Drive
• Do not drive anything you are not considering buying
• Check all major systems• Diagnostics check
• Overall convenience and comfort
![Page 20: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/20.jpg)
The 4 Square
![Page 21: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/21.jpg)
Trade Value
• Dealers will get you on the defensive
• Do not settle for anything less than what you want
![Page 22: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/22.jpg)
Car Price
• Sticker price vs. Price you pay
• Understand you will be paying for more than the cost of the car
![Page 23: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/23.jpg)
Down Payment
• Wiggle Room
• If you give, the salesman should as well
![Page 24: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/24.jpg)
Monthly Payment
• Affordable
• Do not overlook a 10-20 dollar increase
![Page 25: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/25.jpg)
The Contract
![Page 26: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/26.jpg)
Matthew Spanovich
Finding the Right Financing
![Page 27: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/27.jpg)
Leasing vs. Buying
• Do you want to own the vehicle, or rent it?• Do you want to upgrade your vehicle every few
years?
![Page 28: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/28.jpg)
Leasing
• Benefits:• Down Payment and Monthly Payments• Upgrading your car• Bank Loans
• Drawbacks:• Car Rental• Mileage and other restrictions• Higher insurance costs
• Closed-end vs. Open-end
![Page 29: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/29.jpg)
Buying
• Benefits:• Owning the vehicle• Free of restrictions and penalties• Insurance rates
• Drawbacks:• Down-payment and monthly payments• Risk of an upside-down loan
![Page 30: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/30.jpg)
Dealership vs. Institution Financing
• Where can one find the best loan rates?
• Which method requires less hassle?
![Page 31: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/31.jpg)
Dealership Financing
• Most simplistic approach
• Most expensive approach
• Back-End Business Scheme• Dealerships receive big bonuses for signing buyers to
higher interest rates• The dealership may not have your best interest in mind
![Page 32: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/32.jpg)
Institution Financing
• Shop around• Start with one’s personal bank• Other banks• Other lenders
• Negotiate all the details, but do not sign• Go to the dealership with this knowledge
![Page 33: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/33.jpg)
Paying Cash
• Eliminate monthly payments• Interest and finance fees
• Easier to sell the car later on
• Do not empty your savings• Leave yourself a rainy day fund
![Page 34: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/34.jpg)
Down-Payment and Loan Terms
• At least a 10% down-payment on an old car• At least a 20% down-payment on newer cars
• Increasing your down-payment can significantly reduce the overall cost of the car
![Page 35: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/35.jpg)
Rebate or Dealer Financing
• Dealers make you pick one of the two
• The low interest rates typically only apply to older, slower-moving models
• Generally, dealer rebates pay off more
![Page 36: Buying a Car: The Need to Know Doug Martin, Taylor Meyer, and Matt Spanovich March 6, 2012](https://reader035.vdocuments.mx/reader035/viewer/2022062421/56649dbe5503460f94ab173f/html5/thumbnails/36.jpg)
Conclusion
• Conclusion
• Any Questions?