Smart Car Buying and Insurance Guide

1. Purchasing Cars & Insurance Chapter 18 Section 5

2. Purchasing A Car • Cars are a secondary purchase, after you have investigated your budget and can be sure you have the funding • People often move first buy a car later! • When ready…become an educated consumer and research your options

3. Purchasing A Car • Ways to research cars: • Visit the Federal Trade Commission website • Check out Consumer Reports • Read an issue of Car & Driver • Comparison shop! • Look for the Monroney sticker - required by Federal law and states base price, options, retail price and fuel economy.

4. Purchasing A Car • Test drive any vehicle you consider to purchase. • Drive • Test the buttons, locks, seat movement, etc. • Negotiate with the seller • Sometimes they are willing to haggle 15-20% of the price. • Invoice Price - the manufacture’s initial charge to the dealer.

5. Purchasing A Used Car • Used car purchases can be harder than a new car purchase • Before purchasing a used car: • Have it inspected by a mechanic • Check for visual concerns • Check the Kelly Blue Book for estimated value • CARFAX.COM

6. Financing Your New Car • Shop for the best interest rate • Compare APRs (Annual Percentage Rates) • Don’t just take the dealers financing option - check with banks, other co’s. • Read your purchase contract carefully • Know the warranty - coverage by a dealer or manufacturer for a period of time

7. Insurance Protection • Insurance - guaranteeing property or a person against loss or harm due to fire, accident, death, loss of income in exchange for a payment proportional to the risk. • Premium - the policyholder’s payment

8. Vehicle Insurance • Liability Coverage - covers bodily harm property damage and medical expenses for others when you are at fault • Physical Coverage - covers damage to your vehicle caused by collision, fire or theft

9. Places to Purchase Insurance • State Farm • Allstate • Progressive • Geico • Esurance