CONSUMER

STRATEGIES

By Group 5:

Gracelyn Rose Magsayo

Alexis Vince Lariosa
Ella Mae Rozada
Paula Mae Adona
Sheila Mae De Chavez
 TOPICS:

A Major Purchase:
Consumer Purchases
Buying a Car
ENERGIZER:
RIDDLES
WHAT MONTH OF
THE YEAR HAS
28 DAYS?
 ANSWER:
ALL OF THEM
THERE’S A ONE-STORY HOUSE
IN WHICH EVERYTHING IS
YELLOW. YELLOW WALLS,
YELLOW DOORS, YELLOW
FURNITURE. WHAT COLOR ARE
THE STAIRS?
 ANSWER:
THERE AREN’T ANY
—IT’S A ONE-
STORY HOUSE.
 WHAT CAN YOU
BREAK, EVEN IF YOU
NEVER PICK IT UP OR
TOUCH IT?
 ANSWER:
A PROMISE
WHAT GOES UP
BUT NEVER
COMES DOWN?
ANSWER:
AGE
YOU SEE A BOAT FILLED
WITH PEOPLE, YET
THERE ISN’T A SINGLE
PERSON ON BOARD. HOW
IS THAT POSSIBLE?
 ANSWER:
ALL THE PEOPLE
ON THE BOAT ARE
MARRIED.
 CONSUMER
PURCHASES
- refer to items used in daily living (e.g., clothing,
food, electronics, appliances)
- the purchases that most intimately frame your
life: you live with these items and use them every
day
- an expression and a reflection of you, your
tastes, and your lifestyle choices
 The consumer purchase
process involves

Identifying the product:

PREPURCHASE
compare attributes

Identifying the market: compare

price, and convenience

Identifying the financing

 The consumer purchase
process involves

PURCHASE POSTPURCHASE

Negotiating price, Maintenance

purchase costs, and terms Ensuring satisfaction

of sale
 A MAJOR
PURCHASE: BUYING
A CAR
 CASH ON
HAND AND
CAR LOAN
 CASH ON
HAND
— when buying a car refers to the amount
of money you have readily available at the
time of the purchase, it includes the cash or
funds in your possession that can be used
to make a payment for the car without
relying on financing or loans
 ADVANTAGES

Negotiation Power - Sellers may be more willing to offer

discounts or other incentives when dealing with a buyer.

Simplified Transaction - Cash transactions are

generally simpler and faster.
 ADVANTAGES

Avoiding Interest Cost - Using cash means you won't

incur interest cost associated with financing.

Ownership Without Debt - Own the vehicle outright

from the start, without any monthly loan payments or
interest obligations.
WHAT IS CAR
LOAN? A car loan (also known as an
automobile loan, or auto loan) is a
sum of money a consumer borrows in
order to purchase a car. Generally
speaking a loan is an amount of
money that is lent to an individual, a
business, or another entity
 DIFFERENT TYPES OF A
CAR LOAN

Secured auto loans- The car acts as collateral for the

debt so, if the borrower fails to make payments, the
lender can repossess the vehicle and resell it to recoup
its losses.

Unsecured auto loans- Without collateral for security,

the lender is more reliant upon the borrower’s promise
to repay the debt.
 DIFFERENT TYPES OF A
CAR LOAN

Simple interest loans- The Interest is calculated on

outstanding principal at the time the payment is made.

Precomputed interest loans- Interest is calculated for

the duration of the loan then divided into equal
amounts spread over the monthly payments. This
method of calculating interest is more rigid than simple
interest in the sense that, if you had paid down half your
$20,000 loan, you’d still be paying the same proportion
of interest each month.
 DIFFERENT TYPES OF A
CAR LOAN

Direct Financing- is when you obtain a loan by

interacting directly with the lender, like a bank or credit
union.

Indirect Financing - A dealership arranges financing

for a car buyer by requesting a loan from a prospective
lender.
 CAR LOAN

PROS: CONS:

Affordable access to cars Accumulated Interest

Establishing Credit History Depreciation and Negative
Flexible Payment Options Equity
Ownership and Impact on Monthly Budget
Customization Limited Flexibility
 NEW OR
SECOND
HAND CAR?
 ADVANTAGES
OF BUYING A
NEW CAR
1. Reliability
2. Express Manufacturer Warranty
3. Higher Safety Standard
4. Latest Technology
5. Better Financing Option
 DISADVANTAGES
OF
BUYING A
NEW CAR
1. Depreciation
2. High Initial Cost
3. Expensive Auto insurance
ADVANTAGES
OF BUYING
SECOND HAND
CAR Less expensive
Lower insurance rates/ taxes.
More options to choose from
It puts you in a better financial
state if you made a good pick.
DISADVANTAGES
OF BUYING
SECOND HAND
CAR Unknown History.
It can give complex problems.
Higher maintenance cost.
Outdated technology/ feautures.
Limited Warranty.
TIPS:
1. Dont be in a hurry.
2. Don’t buy it at night.
3. Check the tires.
4. Check the transmission fluid.
5. Check the engine oil.
6. Check all the belts.
7. Drive the car around by yourself.
 THANK YOU
We hope you’ve gained helpful
knowledge from our presentation.

Good luck for the quiz!