Chapters 8,9,10,11, and 13

Shyla Johnson

Chapter 8Determining Affordability

• Never buy from the first car shop always check a couple different car shops before buying from one.

• First is, you need to be able to pay 10% of the final purchase of the price of the vehicle and you’ll have to finance the remainder, plus the interest charges. For newer cars the payment maybe anywhere from 0-20% depending on the vehicle and your financial history and even the lender.

• If you get a loan it will greatly impact your interest rate and the total amount you pay in the end.

• Then u need to understand how much you need for a down payment, the annual interest rate, the length of the loan and any extra fees that apply. The lender should clearly state the total amount of the check you need to write at closing under a certain deal.

• Have the lender run various down payment scenarios, this will help in clearly defining your budget based not only on what you can afford on a monthly basis but also the cash you can shell out at the time of purchase.

Chapter 9Shopping For a car

• Before going out and looking for a car you need to consider why you need a car. What will you use it for, commuting to work, long road trips, or just cruising the town. Make a list of where, when, and how much you plan to drive.

• Look at different types and classifications of vehicles.• Regardless of whether your looking for a new or used vehicle, your

search may bring you to a few major dealerships.• Shop at dealerships at the end of the month or the end of the year. You

want do this cause dealerships make their profit numbers on a monthly and yearly basis, so u could get lucky and find a dealership that’s had a bad month.

• Try to look for cars during the week days, because on weekends business is the heaviest with the best sales men, and getting the best sales man is not always in your interest.

• On your first visit explain your reason for being there, don’t let the sales man pressure u into buying a car right off the bat, take your time look around and check out over shops.

Chapter 10Leasing Vs. Buying

• Buying or leasing a new car could both be the right decision depending on your finances and what your looking for in a car.

• Before you buy a car you need to stop and think; how long are you going to be driving this car? Do want to drive a new car every few years? And how hard are you on vehicles? If you beat the crap out of your vehicle and plan on keeping it for more then five years then buying a car might be the thing for you.

• If you want a new car every few years and you want the most luxurious car for your money, then leasing makes more sense.

• Exam the financial differences in buying a leasing, to find out whether you will have license fees, sales tax and other due charges, in addition to your down payment.

Chapter 11Buying a Car

• Make a list of all the features you want and or need from your car. – Do you want and automatic or a manual? – Ask yourself how important is safety features of the car? – Powered locks, seats, and windows? – Do you need a two door or four door?

Chapter 13Insuring Your Car

• Liability Insurance: – This covers two key areas bodily injury and property. Consider this

insurance as the minimum amount of insurance a motorist must have in order to operate a vehicle legally.

• Collision Insurance: – this has to do with your vehicle and how much the insurance company will

pay for the damage to your vehicle regardless of who is at fault. Optional according to the state laws, but may be required under a lease or when financing a purchase.

• Comprehensive Insurance: – Covers damage to your vehicle over then collision, such as floods, theft,

and vandalism. Optional according to state laws, but may be required under a lease or when financing a purchase.

• Personal Injury Protection (No Fault): – Cover the cost of injuries to you or your passengers resulting from an

accident regardless of who was at fault. Many states require the type of coverage.

• Uninsured Motorist: Covers you if you are in an accident wit a party who carries insufficient or no liability insurance. Some states require this coverage.