Chapter 16 l Buying and Owning a Vehicle

Chapter 16 l. Buying and Owning a Vehicle

16. 1 Buying a Vehicle Page 336 l Can You Afford to Own a Vehicle? l Purchase Price l Depreciation l Financing l Other Costs

What Kind of Vehicle Should You Buy? Page 336 l What will I use the car for? l Do I need certain passenger and cargo capacities? Will I need to tow anything? l How many miles will I drive each year? l Will I use the vehicle more for short trips or long trips? l How long will I expect to keep the vehicle?

Vehicle Size-Page 337 What to consider about vehicle size? l Smaller, lighter vehicle usually gets better gas mileage but does not offer as much protection in a collision as a larger, heavier vehicle. l Smaller vehicles are easier to maneuver than larger vehicles, especially when parking l A larger vehicle provides a more comfortable ride but is usually more costly to operate. l A larger vehicle has a greater capacity for passengers and parcels. l

Optional Equipment-Page 337 l What is optional equipment? l Be aware, optional equipment will add to the cost of the vehicle.

Leasing a Vehicle-Page 338 What does it mean to lease a vehicle? l At end of lease, you must choose one of the following three options: l Return the vehicle and lease another one. l Purchase the vehicle at a cost determined at the start of your lease. l Return the vehicle with no obligations to either lease another vehicle or purchase the vehicle you returned. l

Leasing Cont. -Page 338 l Leasing is not for everyone. Most lease agreements limit how many miles you can put on the vehicle. Extra miles are likely to cost you an additional charge.

Buying a used Vehicle-Page 339 l. Warranty

How Much Should You Pay-Page 339 l. Blue-Book Prices

Choosing a Used Vehicle-Page 339 l Good mechanical condition. l Was it ever involved in a collision, or needs repair. l When possible, talk to previous owner about condition of vehicle and previous maintenance service that has be done on vehicle.

Choosing Used Vehicle Cont. Page 339 -341 l Outside and inside checks. l Test Drive-When test driving a vehicle, drive vehicle on a rough road at 25 mph and TURN RADIO OFF. The vehicle should not rattle or feel unsafe. l Have vehicle inspected.

16. 2 Insuring a Vehicle-Page 342 Financial responsibility law l. What is it?

What is Vehicle Insurance-Page 342 l Premium—A specified amount of money you pay for coverage over a specified period of time, to the company.

Liability Insurance-Page 342 l What is liability insurance? l Liability insurance is the most important type of insurance to have. l Protects the driver who caused the collision.

Bodily-Injury Insurance-Page 342 l What is bodily insurance? l Insurance that covers the driver who is at fault against claims.

Property-Damage Insurance-Page 342 l What is property-damage insurance? l Insurance that protects the driver who is at fault against claims for damages to another person’s property, up to specified limits.

Medical Payment Insurance-Page 342 l What is medical payment insurance? l Insurance that pays medical expenses for bodily injuries sustained by occupants in an insured vehicle.

No-Fault Insurance-Page 342 -344 l What is no-fault insurance? l Insurance that is recovered from your own insurance company because of long delays in litigation no matter who is at fault.

Chart on Page 343 l Collision Insurance-Drop after 7 -10 years for new or expensive cars of ownership or when value of car no justifies cost of coverages. l Comprehensive Insurance-Drop after 7 -10 years of ownership for new or expensive cars.

Collision Insurance-Page 344 l What is collision insurance? l Insurance that covers you if you are at fault in a collision, or not able to collect from the person who is at fault. l What is a deductible? l The amount you agree to pay towards the repair or replacement of the vehicle.

Comprehensive Insurance-Page 344 l What is comprehensive insurance? l Insurance that for pay for the replacement or repair of your vehicle if it is damaged for some reason other than a collision.

Uninsured and Underinsured Insurance-Page 344 l What is uninsured insurance? l Insurance that protects you if you are struck by another vehicle whose driver has no insurance. l What is underinsured insurance? l Your insurance company will pay any costs that exceeds what the other person’s company will pay as a result of a collision.

Insurance Rates-Page 344 Factors that determine what you pay for Insurance Driving Record l Age l Miles Driven l Driver Gender l Martial Status l Type of Vehicle l Where Driver Lives l Driver’s Claim Record l

Reduced Premiums-Page 346 l Good grades in school and in some cases drivers who have completed a driver education course. l No claims or convictions for three years. l Multiple vehicles insured under same policy. l Vehicles with certain safety features like airbags and antitheft devices.

Assigned-Risk Insurance-Page 346 l What is assigned-risk insurance? l Insurance provides bodily injury and property damage liability coverage to highrisk drivers for a much higher premium. l Must drive violation free several years before can qualify for standard insurance.

16. 3 Environmental Concerns. Page 347 l What are CFC’s l CFC stand for chlorinated fluorocarbon. l CFC’s are a freon gas located in the air conditioners units of vehicles. l CFC’s are effective in cooling air, but when freon is released into the atmosphere, they break down the atmosphere’s ozone layer.

Mass Transportation-Page 349 l Mass transportation is also known as mass transit. l What are some forms of mass transportation? l Car pooling or van pooling.

Alternative-Fueled Vehicles-Page 350 l What is an example of an alternative- fueled vehicle? l Solar-powered vehicles. l Capture light from the sun and transforms it into electrical power.