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Buying Your First Car

Buying Your First Car

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Buying Your First Car

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  1. Buying Your First Car

  2. Buying a car • Buying a new iPod touch • Buying lunch • Buying a house • Going to prom

  3. Average Prices • Buying a house: $177,900 • Buying a car: $30,000 • Prom: • Girl: $400-$600 • Guy: $200-$400 • Buying an iPod touch: $299 • Buying lunch: $9 Bottom Line? Next to buying a house, buying a car is the biggest expense most people face

  4. Terms to Know • Dealer Invoice Price: • The price the dealer has paid the manufacturer for the car • MSRP: • Manufacturer’s Suggested Retail Price • Usually appears on sticker • Ex: Nordstrom Rack • Sticker Price: • The price the dealership is asking for a new car • Will include additional fees due to transportation costs, dealer prep (washing, gas), etc. • Actual Selling Price: • Price you negotiate! • Why might stores charge different amounts for the same car?

  5. Terms to Know • Base Price: • The cost of the car without options, but includes standard equipment and factory warranty • Ownership Costs: Fixed • Purchase price • Registration, title, license plate • Operating Costs: Flexible • Gas • Tires • Oil changes

  6. Terms to Know • Book Value: • the value of a used car listed in pricing books (Kelley Blue Book) • www.kbb.com • Asking Price: • the amount a seller wants for his/her used car (you may be able to buy the car for a slightly lower price than this)

  7. Do Some Research • You’ll be less likely to feel pressured into making a hasty or expensive decision and more likely to get a better deal.

  8. Questions to Ponder • How much can I afford to spend? • What is the cost of car maintenance? • Where is the nearest shop that services the kind of car I want? • Are parts readily available for the kind of car I want?

  9. Let’s Practice: Reading a Sticker • $20,000 • $26,000 • $28,000 • Range: $20,000-$28,000+ • Would they ever charge more than the sticker price? Why?

  10. Let’s Practice: Name That Car • There are approximately 48 different car companies that you can choose from in the U.S. • Make: Manufacturer (Ex: Ford) • Model: Type (Ex: Mustang) • How many can you identify??

  11. 1) Ford Mustang • $ • 2) Ford Explorer • $ • 3) Audi S5 • $ • 4) Dodge Caravan • $ • 5) Minicooper-S • $