Purchasing a Vehicle
Can you name 7 places
that you can purchase a
car from?
1. By Owner
2. Used car dealership
3. New Car Dealership
4. Auction
5. Rent-A Car
6. Bank
7. E-bay
Rav 4
Car Max/
Vehix.com
Used car dealer
No bargaining
may have
warranty
vehix.com
Auction
Cheapest
Gov.
Agencies
Police
No warranty
New Car Dealer
By Owner
Most
Drive it first
Expensive
Less expensive
Go by
when you drive
reputation
away, you are
Most reliable
responsible
Bicker price
usually no warranty warranty
Rent-A-Car
Hertz
People
Avis
Alamo
Been
Bank
Serviced properly
who
can’t pay for
the car have it
repossessed
New vs. Used Cars
What happens when you drive a new When buying a used car, how can
car off the lot?
you find out what it is worth?
• DepreciationWhat is this?
• Classifieds
• The value of the car drops the
• Auto Trader Magazines
minute you drive off the lot
• Depreciates 15-20% each year
• Kelly Blue Book-average market
• Calculate the depreciation of a
value of a car- depends on the
$12,000 car after 1 year
$ 12,000
X
.15
$1,800
$12,000
-$1,800
Value $10,200
condition of the car
(excellent/good/fair/poor)
• Kelley Blue Book - New Car
Pricing and Used Car Values
Now you’ve decided on buying a New or
Used car, you’ve decided on where to
shop for the car,
Now what are you looking for in a car?
•
•
•
•
Needs- Standard Equipment
Consider size of vehicle
Manual or Automatic
•
Fuel Economy****
Safety Standards: crash tests•
•
•
•
Wants- Optional
Features/Specifications/ Technical
Specs
HD Radio/MP3 accessories
sun roof
leather seats
GPS
Remote entry/starter
Price of a Vehicle
• New Cars
 Invoice Price: How much the dealer pays to get the car
 MSRP (Manufacturers Suggested Retail Price): How much
the dealer will sell the car to you for. Usually higher than
the invoice price.
• Used Cars
 Trade in Value: Trade-in Value is what consumers can
expect to receive from a dealer for a trade-in vehicle.
 Suggested Retail Value: Representative of dealers' asking
prices and is the starting point for negotiation between a
consumer and a dealer.
FACTS ABOUT FUEL
EFFICIENCY
CONTROL YOUR SPEED
 PROPER TIRE INFLATION
 FOR EVERY 5 MPH INCREASE
IN SPEED YOUR CAR GETS
1.5 FEWER MILES PER
GALLON
 COAST TO A STOP AND
MODERATELY ACCELERATE
 VEHICLE DESIGN-MORE
STREAMLINED
 SMALLER ENGINES

Hybrid Cars- What are they?
• Gas and Electric Car
• Better gas mileage in CITY
driving
• Recharge during braking
and coasting
• $5,000 - $10,000
thousand more than
regular cars
CALCULATING MILES PER
GALLON (mpg)
1.
2.
3.
4.
5.
6.
Fill up your tank
Record the ODOMETER reading
Drive until you have ½ a tank of fuel
Refill tank and record ODOMETER reading
and # of gallons used to fill tank
Subtract first odometer reading from the
second reading and divide by the number
of gallons needed to fill the tank
The result is the number of miles per
gallon
MPG
ODOMETER READING #1: 12, 889 MILES
ODOMETER READING #2: 13,101 MILES
# OF GALLONS NEEDED TO FILL: 12 gal
13, 101
-12, 889
212 MILES DRIVEN
212 miles / 12 gal = 17.66 mpg
How many (MPG) does this Grand Am get?
1st odometer reading = 45,608 miles
2nd odometer reading =45,828 miles
# gallons to fill tank = 10 gallons
22
______________mpg
How many (MPG) does this Dodge Durango truck get?
1st odometer reading = 45, 608
2nd odometer reading = 45,752
# of gallons to fill tank = 12 gallons
______________mpg
12
Which automobile is more fuel
Grand AM
efficient?____________________
Why do you think this is true?
Responsibilities of
Maintaining Your Car
•
•
•
•
•
Monthly Expenses
Monthly Car Payment
Gas
Insurance Premium
IPass
Parking
•
•
•
•
Yearly Expenses
Village Sticker
License Plate Renewal
Sticker
Oil Change- 4x year
Tires, brakes, light
bulbs, tune ups, etc.
Buying a Car Project
10 points
• Use Yahoo Autos, MSN autos, Vehix.com, carmax.com to research a
NEW car
• Research:
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–
–
–
price
safety
fuel efficiency
optional features
Dealerships
• Find the trade in value and the suggested retail value of a used car
using the online Kelley Blue Book
• www.kbb.com
• MPG – fuel efficiency equations
• Provide a picture of the vehicle
CR A- DUE 12/8
CR B – Due 12/9
•Engine6.1L engine
•Cylinders8 cylinders
2010 Dodge Challenger RT
• 22
• MPG City
• 14
$41,657.00
Invoice
$
Fair Purchase Price | Add options
to update your price
$43,294.00
•PKG: 22X
•ABS Brakes
•Air Conditioning
•AM/FM Stereo
•Automatic Transmission
•CD Audio
•Cruise Control
•Leather Seats
•Overhead Airbags
•Power Locks
•Power Mirrors
•Power Windows
•Rear Defroster
•Satellite Radio Ready
•Side Airbags
Traction Control
MPG HWY
22
MPG City
14
Transmission=Automatic
Drive2WD
Engine6.1L engine
Cylinders8 cylinders
•
•
Cost to own