Consumer Education

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Consumer Education

• Chapter 12
• Transportation

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12.1 Transportation Basics

• Options for Transportation
• Bicycle
• Inexpensive. Used bikes 25. Average cost for
  new bikes 200-300.
• Make sure you purchase the right bike for the
  type of riding, usually to be used on street.
• Inline Skates
• Inexpensive. 29-150.
• Learn how to use them properly and chose the
  right ones. Hard wheels last longer but don't
  grip as well. Try medium. Boots should fit more
  snuggly than street shoes.
• Motorcycle
• Less expensive than a car (to buy and maintain)
  but still a bit pricy. Need motorcycle license.
  More likely to have a fatal injury than in a car.
  Try to take a training course if inexperienced.

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Safety First!

• Bike
• Helmet
• Inline Skates
• Helmet
• Wrist Guards
• Knee/Elbow Pads
• Motorcycle
• Full faced helmet

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Public Transportation

• (Bus, Streetcars, Subway, Trains, Taxis)
• Cost inexpensive. don't have to pay for gas and
  repairs. no parking fees. Convenience goes to
  the most popular destinations. don't have to find
  a parking spot.
• Speed no traffic on subways and trains. some
  large cities have bus lanes to bypass traffic.
• Other Benefit helps environment because it
  reduces air pollution.
• When available, carpool, which is an arrangement
  to share private transportation. (usually people
  within your neighborhood)

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12.2 How to Choose a Car

• Should You Buy a Car?
• Vehicle 2nd most expensive purchase
• Affordable car loan 20 of take-home pay
• Do not forget cost of insurance, gas, and
  maintenance
• Can you afford it?

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Factor NEW USED
Reliability Fewer problems warranty Warranty from dealer only
Cost Much more expensive. Lose value have to sell for less Loss of value buy for less than its worth
Mileage (Odometer-a measure of wear) More repairs most likely save in long run.
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How to Choose a Car

• Consider styles, sizes, features, options,
  warranties, safety
• Be realistic fit life style
• Prioritize
• Features-characteristics of a particular model of
  car that offer benefits to the owner
• Options- features that you can choose to include
  or not include on the car

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How to Evaluate a Used Car

• (Look/Check for)
• Mismatched paint (accident)
• Rust (everywhere)
• Strains on upholstery/carpeting and mold
• Controls/lights
• Fluid drips
• No pulling
• Brakes
• Grinding/slipping of gears
• Blue smoke from tailpipe oil problem
• Transmission fluid

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12.3 To Buy or Lease?

• Buying on credit can result in lower interest
  rates
• Watch ads and look for rebate offers (rebate- a
  partial refund of the purchase price) IMPORTANT
  do the math because sometimes rebates will end up
  costing more.
• Leasing (renting automobiles) Steps involved in
  Leasing.
• 1.) Negotiate the Price of the Car
• 2.) Know the Residual Value
• 3.) Down Payment and Security Deposit
• 4.) Financing
• 5.) Before You Return Your Lease Car
• 6.) Return Your Lease Car

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Should You lease?

• You probably shouldn't lease if you...
• can pay cash for the car you want
• drive many miles in a year
• keep cars for many years
• are particularly hard on your car

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After you negotiate a price

• financing and insurance is next. Financing can be
  done at your bank or with the dealer. Insurance
  comes in many common policies.
• Accidental Death and Dismemberment pays off the
  balance of your lease or loan if you accidentally
  die or are dismembered.
• Gap Protection pays the difference between what
  you owe and what your car is worth if it is
  totaled in an accident.
• Extended Warranty Protection extended the
  manufacturer's warranty on certain parts and
  services. check out the company you would be
  buying it from

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Final Step

• The Sales Contract Includes...
• Cash price
• Principal amount financed
• Down payment
• Finance charge
• Unpaid cash balance
• Total cost of the loan
• Insurance premiums
• Payment schedule
• Other costs
• READ EVERYTHING BEFORE YOU SIGN

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12.4 The Car-Buying Process

• Determine a Fair -- Price Check List
• Know what you want
• What you can afford
• How to finance
• Know invoice price
• Sticker price is normally 9-11 above invoice
• Trade-ins get less
• Invoice Price-amount the dealer paid to buy the
  car from the manufacturer
• Sticker Price-price tag detailing prices of cars
  options and the total price

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The Buying Process

• Go to several dealers
• Ask experienced car buyers
• Other options-No haggle dealers internet
• Shop towards end of the month (salespeople more
  desperate)
• Shop in colder climates (August/December)
• Examine first, then drive

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How to Negotiate the Deal

• Remember Youre in charge (dont feel pressured
  or threatened)
• Dont tell them the price you can afford
• First offer should be a little above invoice
  price (do not reveal target price)
• Additional charges sales tax, destination fee,
  license and registration, documentation fee
• Read all Paperwork

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12.5 How to Maintain a Car

• Maintenance Every Car Needs
• Learn how it works (read owners manual)
• Regularly check tires, oil, and other fluids
• Tune-ups, brakes, and routine checks are
  important
• Repair Services
• Choose a repair shop by
• Getting recommendations
• Checking them out
• Building a relationship
• When something is wrong with your car?
• Describe the problem
• Get and estimate
• Keep in mind guarantees
• Check and pay for repairs
• Save receipts
• If youre not satisfied?
• Talk with manager
• Ask Better Business Bureau
• Small claims court

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Lemon Check List

• Defect cannot be fixed after three or four
  attempts
• Continued major problems that keep it in the shop
  for 30 days during the warranty period
• Numerous major problems
• Lemon Laws-protect consumers who buy defective
  new cars