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Vehicle and
other Major
Purchases
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Buying an
Automobile
Owner Content Product

1. Research your purchase thoroughly,

considering not only the market but also your
personal needs.
2. Select the best item for your needs.
3. Buy the item after negotiating the best
practice and arranging financing on favorable
terms.
4. Maintain your purchase and make necessary
repairs promptly.
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10 Steps to Buying a New Car

1. Research which car best meets your needs and determine how much you
can afford to spend on it.
2. Check websites, TV and Newspaper for incentives and rebates on the car
you would like to buy.
3. Decide on a price based on dealer’s cost for the car and options, plus a
mark-up for the dealer’s profit, minus rebates and incentives.
4. Find the exact car for you in terms of size, performance, safety and
styling.
5. Test-drive the car.
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10 Steps to Buying a New Car

6. If you are trading your old car, you will not likely get as high a
price as if you sold it yourself.
7. Negotiate the lowest price by getting bids from at least three
dealers.
8. Close the deal after looking not just at the cost of the car but also,
the related expenses.
9. Review and sign the paperwork.
10. Inspect the car for scratches and dents.
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Affordability
You’ll need to calculate two numbers – unless
you plan to pay cash for the entire cost of the
car.
1. Amount of down payment
2. Size of the monthly loan payment you can
afford
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Gas, Diesel or Hybrid

GAS

Gasoline a volatile flammable

DIESEL

Diesel fuel is the common

HYBRID

Hybrid combines at least

liquid hydrocarbon mixture
term for the distillate fuel one electric motor with a
used as a fuel especially for
oil sold for use in motor gasoline engine to move
internal combustion engines
vehicles that use the the car, and its system
and usually blended from
compression ignition recaptures energy via
several products of natural
gas and petroleum. engine. regenerative braking.

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Finding the Best Car for You

01 02 03

Start your
examination of a car
with an inspection of
key points.
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How easy is it to get people and things into and out of

the car?
Do the doors open easily?
Is the trunk large enough for your needs?
Does the car offer a pass through?

Comfort and Visibility:

Are the seats comfortable?

Can you adjust the driver’s seat and steering wheel properly?
What are the car’s blind spots for a person of your height?
Can you see all the gauges clearly?
Can you reach the control for the radio, CD Player, heater, air
conditioner, and other features easily while driving?
Does it have the options you want?
Finding the Best Car for You
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Finding the Best Car for You

Then take the car for a test drive:

Set aside at least 20 minutes and drive it on highways and local roads.
To test acceleration, merge into traffic getting onto the freeway and
try passing another car.

If possible, drive home and make sure the car fits into your garage –

especially if you’re interested in a larger SUV or truck

For a used car, test the heater and air conditioner. Then turn the fan off
and listen for any unusual engine noises.

Check out overall handling. Parallel Park, make a U-turn, brake hard
and so on. Do the gears shift smoothly? If testing a standard

transmission, try to determine if the clutch is engaging too high or too

low, which might indicate excessive wear or a problem.
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Should you Buy or Lease Your

Next Car?
Advantages of Leasing

1. Better car for less money

2. A new car every few years
3. No trade-in hassles at the end of the lease

Advantages of Buying
1. When interest rates are low, owning makes more financial sense than leasing
2. No mileage penalty
3. Increase flexibility
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THANK YOU
See You Next Time
MASLOG

If you decide
to buy, then
you need to
decide if you
want to buy
new or used.
Here are some
Buying advantages
and
disadvantage
s to buying a
used car.
MASLOG

1 Costs less

Advantages 2 Slower Depreciation

3 Less expensive insurance

Total savings add up over

4 time
MASLOG

May buy a set of

1 problems

Repair bills can add up

2 over time
Disadvantages

3 Don't know the car

There are also some

things you could do Ask “why” the owner is selling the

and ask about the car vehicle.
Has the vehicle been in an accident?
to help make a better
Inspect the exterior for signs of an
decision.
accident.
Inspect the interior.
Inspect under the vehicle for leaks or
drips
Ask for service records.
Have a mechanic perform an
inspection that includes an engine
compression test.
Make sure the person selling the
vehicle actually holds the title.
MASLOG

1 Warranties

Advantages 2 Less Problems

3 Higher resale value

MASLOG

Depreciation (15-25%
1 first 2-3 years)

2 Pay more
Disadvantages

3 Lemons

Higher insurance
4 premiums
 1 Leasing
Ownership
You do not own the vehicle. You get to use it but must return it
at the end of the lease unless you choose to buy it.
Up-front costs
Up-front costs may include the first month's payment, a
refundable security deposit, a capitalized cost reduction (like a
down payment), taxes, registration and other fees, and other
charges.
Monthly payments
Monthly lease payments are usually lower than monthly loan
payments because you are paying only for the vehicle's
depreciation during the lease term, plus rent charges (like
interest), taxes, and fees.
Early termination
You are responsible for any early termination charges if you end
the lease early.
Vehicle returns
You may return the vehicle at leaseend, pay any end-of-lease
costs, and "walk away."
End of term
At the end of the lease (typically 2-4 years), you may have a new
payment either to finance the purchase of the existing vehicle
or to lease another vehicle.
2 Buying
BUYING: You own the vehicle and get to keep it at the end of
the financing term.
BUYING: Up-front costs include the cash price or a down
payment, taxes, registration and other fees, and other
charges.
BUYING: Monthly loan payments are usually higher than
monthly lease payments because you are paying for the
entire purchase price of the vehicle, plus interest and other
finance charges, taxes, and fees.
BUYING: You are responsible for any pay-off amount if you
end the loan early.
BUYING: You may have to sell or trade the vehicle when you
decide you want a different vehicle.
BUYING: At the end of the loan term (typically 4-6 years), you
have no further loan payments.
 Know your rights and

responsibilities

When you lease a vehicle, you have the right to:

-
Use it for an agreed upon number of months and miles

- , - -
Turn it in at lease end pay any end of lease fees and

, "
charges and walk away "
Buy the vehicle if you have a purchase option

, ,
Take advantage of any warranties recalls or other services

that apply to the vehicle .

 You may be responsible for:

Excess mileage charges when you return the vehicle. Your lease

agreement will tell you

how many miles you can drive before you must pay for extra

miles and how much the per-mile charge will be.

Excessive wear charges when you return the vehicle. The

standards for excessive wear, such as for body damage or

worn tires, are in your lease agreement.

Substantial payments if you end the lease early. The earlier you

end the lease, the greater these charges are likely to be.

 Home Buying Tips

1.Say no to “
no money down ” seminars.
2.Stay away from bad agents

3. ’
Don t wipe out your savings

4.Rely on professional advice

5.Avoid exotic financing

6.Pick the right neighborhood .

7. .
Stay away from the most expensive home in the neighborhood

8. ’
Don t pass up the home inspection

9. ’
Don t change the financial picture before closing

10.
Plunging into debt after closing .
Thank
Have a great
day ahead.

you!