Cars!

Consumer

• A person who buys a good or service from a seller

Caveat Emptor

• “Let the Buyer Beware”• In the past, consumers

had to look out for themselves for unfair or misleading sales practices

What to consider when buying a car!

1. Safety 1. Federal law requires car

dealers to provide information

2. Price1. Size of discount on a car

depends on the time of year, your negotiating ability, special sales, bonuses, rebates etc.

3. Quality4. Warranty5. Fuel Economy

1. What do you think about this car?

Additional Car Buying Information

• Kelley Blue Book: Started in 1926, this resource provides information evaluating cars– List the top 5 cars for 2012

• National Highway Transportation Safety Administration: compare crash and rollover tests for cars, trucks, vans and SUVs.– List three safety recalls

“Buyers Guide Stickers”

• Required by the Federal Trade Commission

• Must include:– Does vehicle come with

express warranty– If the car is sold “as is”– Advice to receive all

promises in writing and have car inspected before purchase

Truth in Lending Act

• Creditors must provide written disclosure of important terms of the agreement– Includes APR– Finance Charges– Total Amount Financed

Financing a Car

• The longer a payment then the more expensive the total loan, but individual payments are smaller.– Answer questions A and B

on page 347.

• Down Payment: cash that must be paid up front when something is bought over time

Don’t want to buy a car?

• Leasing: Pay a monthly fee to drive a car for a certain amount of time– Consumers may pay a large

sum at the end of a lease to purchase the car

• Car Sharing: Consumers in urban areas pick up a car from a parking spot, use for their needs and return to the spot– Example

N.C. Lemon Law

• Manufacturers must fix all defects on NEW vehicles within the first 24000 miles or 24 months.

Cigarette Labeling Act

• Tobacco companies could no longer using cartoons to market cigarettes and must provide warnings

• Cigarette Labeling Act

Americans with Disabilities Act

• Protects individuals against discrimination on the basis of disability

• Americans with Disability Act

• Americans with Disabilities Act