Presentation Outline Intro Used Cars New Cars Financing

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Presentation Outline • • Intro Used Cars New Cars Financing Leasing “Smart-buy” Psychology

Presentation Outline • • Intro Used Cars New Cars Financing Leasing “Smart-buy” Psychology

WHAT to Consider? ? ? • • Type Price Range Duty Requirements Options

WHAT to Consider? ? ? • • Type Price Range Duty Requirements Options

The Selection Process • Know what you want before shopping • Take your time

The Selection Process • Know what you want before shopping • Take your time and never “Impulse Buy” • Read: Newspapers, magazines, Swap Sheet, Auto trader, etc.

The Selection Process • See other cars like it on the road • Talk

The Selection Process • See other cars like it on the road • Talk to owners & mechanics and ask what they think of your choices

Research Guides • Edmunds • NADA • Kelly's Blue Book • Consumer Reports •

Research Guides • Edmunds • NADA • Kelly's Blue Book • Consumer Reports • • • www. edmunds. com www. kbb. com www. nhtsa. dot. gov (recalls) www. cars. com www. autotrader. com

Used Car Strategies… • Take clipboard or notebook to write down things to compare

Used Car Strategies… • Take clipboard or notebook to write down things to compare cars later • Make appointments to see the vehicle during the day

 • Measure tire wear (smoothness) and check evenness of tire wear • Check

• Measure tire wear (smoothness) and check evenness of tire wear • Check air cleaner if it’s easy to open • Observe paint color (Examples) tape marks, sheen/ shine, door jams to see if the car was recently painted

 • Wear old clothes and get on your belly with a flashlight and

• Wear old clothes and get on your belly with a flashlight and look at lower edges, exhaust, shocks, undercoating, leaks, etc. • Bounce the car for spring/shock issues

 • Look inside engine compartment • Smell dipsticks • Pull PCV? • Open

• Look inside engine compartment • Smell dipsticks • Pull PCV? • Open oil fill cap • Check steering wheel wear

 • Check mileage (13 -15 K per year is average) 2001 Chevy Impala

• Check mileage (13 -15 K per year is average) 2001 Chevy Impala Estimated mileage: 150, 000 miles Actual mileage: 85, 000 miles RESULT: vehicle has low miles which is good!

 • Brake pedal wear • Driver seat stitching • Ask to see the

• Brake pedal wear • Driver seat stitching • Ask to see the service records • Always see convertibles in the rain… • Always attempt to test drive…ALONE! • Listen for squeaks and rattles when you drive it.

VIN NUMBER AUTO CHECK • Marks a vehicle in a database that tracks theft

VIN NUMBER AUTO CHECK • Marks a vehicle in a database that tracks theft and accident repairs • VIN History Reports costs $19. 99 $39. 99

New Car HELP • You always hold the power • Say…“What price would you

New Car HELP • You always hold the power • Say…“What price would you give me” • You CAN always walk away from a deal • KNOW that you will pay too much. • Sticker Price averages 11% over cost • Your JOB is to give them minimal profit! • Don’t be nervous and be prepared to negotiate • Expect silly tactics…

Financing • Check rates – 1%- 6% good • 3 -6 year commitment

Financing • Check rates – 1%- 6% good • 3 -6 year commitment

Financing Think total cost!! Attempt to get the lowest payment per month • Add

Financing Think total cost!! Attempt to get the lowest payment per month • Add taxes and other fees before you calculate the monthly payment.

USED CAR BOTTOM LINE • • Cost of the car + TAX + DMV

USED CAR BOTTOM LINE • • Cost of the car + TAX + DMV fees + Dealer fee if buying from dealer ? • = A LOT MORE THAN YOU ORIGINALLY THOUGHT !

LEASE • List all costs compared to Financing • You will pay for the

LEASE • List all costs compared to Financing • You will pay for the high depreciating years as it loses its value • Know that you will not have any equity in the car after your contract expires • You can’t heavily modify the car!

LEASE • You are limited on the amount of mileage over the life of

LEASE • You are limited on the amount of mileage over the life of the contract • Monthly payments are lower than traditional financing • Bank owns your car

LEASE BOTTOM LINE • Cost of the car • What the car will be

LEASE BOTTOM LINE • Cost of the car • What the car will be worth after the contract time + • DMV fees + • Dealer fee if buying from dealer ? • = CHEAPER THAN FINANCING THE ENTIRE AMOUNT THROUGH TRADITIONAL MEANS

Summary: PSYCHOLOGY • • Buying a car is PSYCOLOGICAL! You are the CONSUMER Never

Summary: PSYCHOLOGY • • Buying a car is PSYCOLOGICAL! You are the CONSUMER Never IMPULSE buy Compare cars and prices everywhere • Don’t believe them when they say it will be gone tomorrow. Let that one go if it doesn’t feel right • TAKE YOUR TIME

INSURANCE • Why your parents policy? – Cheaper for you – You can drive

INSURANCE • Why your parents policy? – Cheaper for you – You can drive legally – Pricey for them, so be nice to them for a change • If you were to go on your own…average – 1 year policy = $1200/ 6 months • Which is $2400/ year or $200/ month or more

The End…

The End…

SMART BUY LEASE • They will calculate how much your car will be worth

SMART BUY LEASE • They will calculate how much your car will be worth by the end of your contract and base your payments on that price • The last payment is usually the remaining balance owed of what the car is worth after your contract expires

SMART BUY LEASE • You own the title • You can’t heavily modify the

SMART BUY LEASE • You own the title • You can’t heavily modify the car! • You are limited on the amount of mileage over the life of the contract • Monthly payments are lower than traditional financing

SMART BUY EXAMPLE • Total car price: $20, 000 • Contract: $230/mo for 48

SMART BUY EXAMPLE • Total car price: $20, 000 • Contract: $230/mo for 48 months • Add up your monthly payments: – $10, 810 after 47 months – 48 th payment is: $9, 590 • You can pay this amount, or refinance it again – Easier than Leasing