Drivers Edge: Interactive slides and videos
CATEGORY: Copyrighted Driver Education School Literature
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Buying a New / Used Car
Purpose of this lesson:
 Learn how to assess a used car for possible
purchase
 Learn how to determine a fair price for a used car
and understand the negotiation and purchase
process
 Come to an understanding of the resource tools
available to purchase a new car at a fair price
 Precautions to take in the purchase process
so as to not be taken advantage of.
Buying a New / Used Car
-- After the completion of this material there are
23 review questions. These questions are also
found the the Microsoft Word document titled:
Buying a car review questions
(it is suggested that you print out these questions
and give a copy to your students so they can fill
in the answers at the end of the lesson)
Buying a New / Used Car
Since most first time buyers purchase
pre-owned cars, we’ll consider used cars first
Buying a New / Used Car
Thinking about your needs:
What do you need it for?
- Passenger and cargo considerations:
Basic transportation for 4-5 passengers?
OR
Will you have cargo carrying needs as well?
Buying a New / Used Car
Thinking about your needs:
What do you need it for?
- Larger or smaller vehicle
What are advantages
of smaller, lighter vehicles?
- better gas mileage
- easier to maneuver (parking)
- less expensive price and lower insurance costs
Buying a New / Used Car
Thinking about your needs:
What do you need it for?
- Larger or smaller vehicle
What are disadvantages
of smaller, lighter vehicles?
- less protection in a collision
- not as comfortable as larger cars
- less passenger and cargo capacity
Buying a New / Used Car
Thinking about your needs:
What do you need it for?
- Larger vehicles
- greater protection in a collision
- usually more comfortable
- greater passenger and cargo capacity
- more costly to operate and insure
Buying a New / Used Car
Thinking about your needs:
What do you need it for?
- school, business, pleasure?
What
What
are some
options
other
would
factors
you
concerning
consideryour
a necessity?
needs?
- Will you be making short or long trips?
- The expected mileage per year?
- How long do you expect to keep the vehicle?
Buying a New / Used Car
Choosing a Used vehicle:
- Usually the first thing you will observe about a car is
it’s_________________ appearance.

What are the basic
exterior checks
you should make as
you walk around the
vehicle the first time?


Check for dents, scratches, and
rust, and differences in paint
shades, do body panels line up
properly? (what might this mean?)
Examine tires for even tread wear,
cracks in sidewalls
Open and close doors, try locks,
windows and trunk (trunk should
be clean with a secure spare tire)
Buying a New / Used Car
Choosing a Used vehicle:
- Other checks will include getting down on your hands
and knees to look____________the vehicle.

Most people
What
areyoung
the basic
(especially
people)
checks
make
do notyou
haveshould
the expertise
to properly
the
beneath
theassess
vehicle?
condition of used vehicles
…bring experienced
help with you


Check for fluid leakage on
pavement (oil, transmission,
coolant, brake fluid)
Look for leakage by brake
lines (near inside of tire)
Look for holes or heavy rust
in exhaust pipes, muffler
Buying a New / Used Car
Choosing a Used vehicle:
-Besides the overall exterior appearance…what about the
_________________ condition under the hood?

Again, most people
have
limited
What
areknowledge
the
of the mechanical
aspects
engine
checks that
of the
soundness
of an engine
should
be made?
…bring experienced
help with you …but some
things are obvious
Inspect the belts.
(are they worn or frayed?)

Belts: are they worn or frayed?
Buying a New / Used Car
Does the oil have
a burnt smell?
Choosing a Used vehicle:
…if so there could be a serious engine problem
-Besides the overall exterior appearance…what about the
_________________ condition under the hood?

Inspect the belts.
(are they worn or frayed?)
What are the
you checks
should make?


Check the oil dipstick
to see if the oil is dirty
(very dark)
The electrical wires
should be dark without
cracks and hoses soft


The electrical wires should be dark and hoses soft
Signs of oil leakage around manifold covers?
Buying a New / Used Car
Choosing a Used vehicle:
-Besides the overall exterior appearance…what about the
_________________ condition under the hood?
Again, most people
have
limited
What
areknowledge
the
of the
mechanical
you
checks aspects
of the
soundness
of an engine
should
make?
…bring experienced
help with you…but some
things are obvious
Other things . . .
 Inspect battery and
cables for corrosion
Also check for any evidence of a collision
(bent fan, damaged radiator, etc)

Check coolant level and color (should be bright green – not brownish)

Inspect battery and cables for corrosion
Buying a New / Used Car
Choosing a Used vehicle:
-Besides the overall exterior appearance…what about the
_________________ condition under the hood?

What should be
checked after
the engine starts?


Are there loud knocking or
pinging sounds?
Is there excessive vibration
(shaking of engine)?
Are there leaks from hoses
or radiator?
Buying a New / Used Car
Choosing a Used vehicle:

Are the seats
comfortable and in
good condition?

Check the pedals
and steering wheel
for excessive wear
and notice mileage
on odometer…

Does it have a musty
odor? If so vehicle may
have been in a flood
Buying a New / Used Car
Choosing a Used vehicle:

Also, check carpet
and interior for rips
or holes

Check the seat
adjuster (electric
or mechanical)

Do the mirror adjusters
work properly
Do seat belts work and
retract properly

Power windows and door locks
What are some other
non-electrical inside checks?
Buying a New / Used Car
- First, when ignition is turned on,
check all warning lights, which
should then go off in a couple
seconds.
What are some
inside electrical checks?
…if one stays on, what might this indicate?
…a problem in that system
Buying a New / Used Car
- Do all lights & accessories work?
- Radio / tape / CD - Horn
- Air conditioning / heat - Wipers
- Headlights / tail lights / courtesy lights -Turn signals
Buying a New / Used Car
So far you may like everything about the
car but the test drive is critical to see if it
will perform as it should.
• ALWAYS test drive a car before buying it. If the owner refuses,
then look for a different car. Do not feel rushed, take your time.
• With radio off, what do you hear and feel? Listen for difficulties
in starting or abnormal sounds while driving and turning.
•Drive on both smooth a bumpy roads to get a better
assessment of the vehicle’s handling. Also listen for rattles.
•Does the vehicle hesitate when you quickly accelerate?
It should accelerate and the automatic transmission should
shift smoothly smoothly without hesitation from 0-40 mph.
Buying a New / Used Car
Are the brakes in good condition? Brakes
shouldn’t grab or pull to one side. Test with
sudden stops on empty streets. Make three
stops in a row. Step on pedal each time with
same pressure observing if you stop in a
straight line each time. If you hear a metal
on metal sound the brakes are dangerously
worn down and the repair can be
substantial.
Is the steering firm? There should not
be much “play” in wheel. There should
not be squeals, groans, creaks, or
grinding noises. Let the car steer itself
on a flat portion of road to check the
alignment. It should not quickly drift to
either side.
Buying a New / Used Car
- How is the suspension?
(on an off expressway ramp, how
does the suspense handle the
curve…tilt, hop, or sway?)
- Be sure to check the exhaust:
black smoke may mean oil burning,
blue may mean gas burning.
Accelerate quickly to test this.
- Check the dashboard warning
lights: oil, temperature and others
for any malfunction.
What one thing
should still be done?
Failure of the vehicle to
pass all the inspection
and road tests should not
necessarily disqualify it.
Most used cars have some
problems that need
correction. These can
often be negotiated into
the final pricing.
Buying a New / Used Car
- If still interested in purchasing the
vehicle it wise to have the vehicle
professionally inspected
- It will be worth the time
and money you spend
and can save you a lot in
the long term. You’ll get
a fair assessment of the
cost of needed repairs
which will help you
decide if you still want
the vehicle.
Next, its
time to
make a deal
Buying a New / Used Car
Make sure to check the blue book price
www.kbb.com and yellow book NADA price. If over
the price listed, try to negotiate a lower price. The
owner / dealer wants to sell the vehicle, so if your
counter offer price is reasonable, they will consider
it. Don’t let the owner or dealer make you feel
uncomfortable. Many dealers will try to pressure
you, but remember, it’s ok to say no…the vehicle you
need is probably somewhere else, and may be
cheaper or in better condition.
A couple other key points:
If the seller is to make needed repairs, be
sure it’s included in the written agreement.
Don’t forget the owner’s manual.
A few other
things before
considering
buying a
used car
Buying a New / Used Car
•As is: no warranty (dealer / owner will not make repairs)
•Implied: varies from state to state
•Full: (bumper to bumper) excludes normal wear & tear
•Limited: you may have to pay labor
•Extended: you pay extra to extend the length coverage of the
warranty
Where can used vehicles be purchased?
Buying a New / Used Car
New Car Dealerships
- Certified used cars that pass inspections
- They keep best trade-ins (auction off the
rest)
- Service Facilities available
- Usually most expensive
Used Car Dealerships
- May have warranty
- Some have a bad reputation
- Limited Service facilities
Where else can you
obtain used vehicles
Buying a New / Used Car
Private Party / Owner
- Seldom repair or provide you with a warranty.
- All paperwork must be handled between both parties.
- Watch out for “curb-stoning”- where dealers sell cars
secretly through themselves or other people, like spouses or
friends. Illegal in most states.
Repossession Auctions
- If the person couldn’t afford to pay the loan payments.
- You then pay for what is owed and the repossession cost.
Places To Check Prices, Get Information, & Buy
KBB.com
NHTSA.dot.gov
edmunds.com
carmax.com
Buying a New / Used Car
New Car Dealerships
Internet Companies
Before going through a new car
dealership or Internet company a
lot of sensible buying information
can be found using the Internet.
Let’s just consider
the basic steps to take
Buying a New / Used Car
New Car Shopping Steps
(the list below is the overall outline –
each one will be examine separately)
1 ) Create a budget, obtain your credit
report, get you financing in order.
2) Use free internet sites for determining
dealer costs, car reviews, and pricing
for your trade-in.
3)
4)
5)
6)
Visit dealers to check base price and options for pricing car.
Take information home, continue researching to determine
the dealers true cost.
Go to the dealer to negotiate your offer and close the deal.
Generally offer the dealer 5% over their true cost. They are still
making a profit and you will get a fair deal.
Buying a New / Used Car
Review time…let’s see what you remember…
1) Usually the first thing you will observe about a vehicle
is its _______________ appearance.
2) Your first walk around is to notice dents, scratches,
differences in paint shades and if the body panels align
properly. You’re looking to see if it has been in a ________
3) The checks beneath include the condition of the exhaust
system and any ____________you may notice on pavement.
4) Most people do not have the experience to fully assess
the condition of a used vehicle. It is important to bring an
___________________ with you.
5) When inspecting under the hood, you are checking the
condition of the ________ to see if they are worn or frayed.
6) If when checking the oil, you notice its dark with a burnt
smell, this could indicate a ____________problem.
7) Also under the hood, the hoses should be ______and the
electrical wires should be ________ without cracks in them.
8) You should also look for signs of oil leakage around the
_____________covers of the engine.
9) When you check the coolant, it should be a brownish-red
color. True or False: ________
10) After starting the engine get out and listen for
__________________ or __________sounds.
11) You will also inspect around the radiator and connecting
hoses for any _________ that may be present.
12) When inside the vehicle, if the pedals and steering wheel
appear to be worn, this means the car has______________.
13) If after you start the engine, you notice a warning light
stays on, what does this mean? ______________________
14) On the test drive the ___________________should shift
smoothly without hesitation from 0-40 mph.
15) When testing the brakes a few times, the car should stop
in a ___________line, not pulling to either side.
16) To check the alignment, let the car steer _______ on a
_______portion of road. It should not quickly drift over.
17) You should also check the exhaust. Black smoke could
indicate __________.
18) Failure of the vehicle to pass all the inspection and road
test should not necessarily _______________ it. Most used
cars have some problems that need correction.
19) One of the final, most important steps before buying, is
to have a ______________________ check it out for you.
20) If the seller is to make needed repairs, be sure it is
included in the ____________agreement.
21) When buying a new car, a lot of sensible buying
information can be found by using the ____________.
22) An essential item to have in your possession before
going to the dealer, is an updated ___________ as a tool
for getting the best financing on the vehicle.
23) Generally, after researching everything, offer the dealer
about ____% over the dealer cost for the vehicle.