Chapter 15
Buying A Car
Are You Mature Enough To Own A
Car?
• The first question you should ask yourself is if
you are mature enough to accept the
responsibility that goes with owning and
driving a car
Why Do You Want A Car?
• Cars make you more independent
• They save you time getting from one place
to another
• Owning a car makes you feel more grownup
• Going places in your own car is fun
Do You Need Your Own Car?
• Some questions you should consider are:
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How far will you be traveling each day
How do you get to these places now
How available is public transportation
Is there a family car available to you
• If you answers to those questions indicate that
you don’t just want a car, you really need one, you
still have other questions to consider.
Can You Afford A Car?
• You will need to examine all costs of owning a
car such as purchase price, fuel, tune ups, and
repairs. You also must pay for insurance,
licensing and registration, tolls, and property
taxes.
What Personal Factors Influence
the Kind of Car You Need?
• How many passengers will you usually have?
• What age are your passengers?
• How many miles do you expect to drive each day,
month, or year?
• Will you use the car to carry heavy loads or tow a
trailer?
How Can You Select a Car That Is
Safe?
• Does the car have air bags?
– In head-on crashes, most fatalities occur when the
driver hits the steering wheel and suffers chest
injuries. Air bags help prevent such injuries.
• What is the death rate per 10,000 registered
models of the car?
– If the death rate of a particular model is more than 2
per 10,000 registered cars, think twice before buying.
• How does the car hold up in a crash test?
– Crash-test data is available from the Insurance
Institute for Highway Safety.
• Does the car have antilock brakes (ABS)?
– Cars with antilock brakes can stop in a shorter
distance on slick surfaces than can cars without these
brakes.
How Can You Check a Car’s Comfort
Features?
• You will spend a lot of time in your car, so check to
be sure that it’s comfortable for you.
• Get into the car. Does it fit you?
• Adjust everything and ask to take the car for a test
drive
• Be sure that you can reach all accessory switches and
dials easily and that the seat is comfortable enough
that a long drive wont leave you with an aching back
How Van You Determine Whether a
Car is Fuel Efficient?
• Fuel consumption depends on a car’s weight,
type of engine, design, and type of
transmission, among other factors.
The Weight of the Car
You cannot always judge a car’s weight just by looking at
the car. Find the exact weight. The less weight an engine
pulls, the more efficiently it works.
The Type of Engine
The more cylinders in the engine, the more fuel it uses.
Unless you will be going up steep hills a lot, a 4- or 6cylinder engine probably will meet the needs of most
intermediate-size cars.
The Design of the Car
One key to fuel economy is how well the vehicle overcomes
air resistance. A streamlined car has less air resistance
than a car with a boxy design.
The Type of Transmission
When used correctly, a manual transmission consumes less
fuel than an automatic one.
Extra Equipment
Features such as air-conditioning also increase fuel use.
What to Know About Buying a Used
Car?
• You can buy a used car from a private owner or a used
car dealer. Buying from the owner can cost less, but you
will not get a warranty. Dealers, on the other hand, often
offer warranties.
• Before buying a used car, test-drive it. Shaky steering and
a wobbly ride may mean misaligned front wheels or the
need for wheel balancing. Also check for other red flags
or issues.
What to Know About Financing a Car
• To finance the purchase of an automobile, you need to
know where to get a car loan and the amount of the
monthly payments.
Where to Get Financing
• If you are a full-time high school student, you will not be
able to obtain financing on your own. The lending
institution will require that an adult be responsible for
repayment.
• Drivers finance their cars through banks, credit unions,
finance companies, and, if buying a new car, often
through the dealer.
The Amount of Monthly Payments
• Different sources of financing often charge different
interest rates. Compare rates to get the best deal.
• The amount of loan is based on the cost of the car.
• The amount of time you have to pay back the loan is
based on whether the car is new or used. Used car loans
have to be re-paid more quickly than new car loans.
• You should try to pay as much as you can on the down
payment and borrow the rest. The lender will give you a
schedule of monthly payments.
What Kinds of Insurance Might You
Need?
Liability Insurance
• Liability insurance is proof that you will be financially
responsible if you cause damage to property or injure
other people. Many states require drivers to prove they
have a certain amount of liability insurance before theirs
cars can be registered
• Liability insurance protects you against claims if you are
at fault in a collision. It also helps you to pay for an injury
or property damage caused by your actions. It protects
you and anyone else who has permission to drive you car.
Uninsured Motorist Insurance
• Although many states require that car owners have
liability insurance and show proof of it before their cars
can be registered, some drivers allow their policies to
lapse or cancel their policies.
• If you are involved in a collision with such a driver, or if
you are involved with a hit-and-run driver, uninsured
motorist insurance protects you.
Collision Insurance
• Collision insurance pays for damage to your car even if
you are to blame in a crash or are involved with an
uninsured driver.
• Collision insurance also covers repairs if your car is
damaged in a parking lot or in a parking space on the
street.
Comprehensive Insurance
• If your car is damaged by anything other than a collision,
comprehensive insurance pays the bills. For example,
comprehensive insurance covers theft or damage caused
by fire, explosions, natural disasters, or riots.
Medical Payment Insurance
• Medical payment insurance covers medical, hospital, or
funeral costs regardless of who is at fault. The amount
paid is determined by the policy and usually ranges from
$1,000 to $5,000 per person.
No-Fault Insurance
• In this system, your insurance company pays your
medical bills and any other costs resulting from a
collision-related injury.
• The system is called no-fault because blame is not
considered before the insurance company pays your bills.
• In very serious accidents, the injured can still go to court
and sue the person responsible for damages.
Towing Insurance
• Towing insurance covers the costs of on-road repairs and
the cost of having your car towed.
What Factors Determine the Cost of
Insurance?
• You purchase car insurance by paying a premium, or a set
amount, to an insurance company, usually every six
months.
• Insurance companies rely on statistics to determine their
rates. The statistics indicate the likelihood of certain
types of cars being involved in a crash.
• Your age: Drivers under the age of 25 pay the high
premiums
• Your driving record: Convictions, collisions, and
insurance claims can increase your insurance costs.
• Mileage per year: The farther you drive, the more your
insurance will cost.
• Where you live: If you live in a city, your insurance costs
will be greater than a person who lives in the county.
• If you drive to work: Carpooling reduces the cost
• Your gender: Women pay lower rates than men.
• Your marital status: Young married men pay less than
men of the same age who are single. Young married men
are involved in fewer collisions than single men.
• The value of your car: The more expensive the car, the
greater the cost of insurance
• The type of car: A sports car will cost more to insure.
• Many insurance companies offer discounts to students
who have completed a driver education program and to
students whose grade average is B or higher.
Ashley Jones