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Transportation

Transportation. How do you want to get around?. New vs. Used. New Car: indicates the vehicle has NOT been previously owned by another person. Used Car: - indicates the vehicle HAS been previously owned by another person. Pros to Purchasing a New Car. Full factory warranty.

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Transportation

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  1. Transportation How do you want to get around?

  2. New vs. Used • New Car: • indicates the vehicle has NOT been previously owned by another person. • Used Car: - indicates the vehicle HAS been previously owned by another person.

  3. Pros to Purchasing a New Car Full factory warranty. No potential abuse or surprises. Lower financing rate. Able to lease (ie: electric car) Lemon Law coverage. New car smell! You can get exactly what you’re looking for.

  4. Pros to Purchasing a New Car • The Lemon Laws: • Protect consumers from substantial defects occurring within a specified period after purchase and provide that a manufacturer must either replace the lemon with a new, comparable car or refund the full purchase price. In Other Words: • Law governing the rights of purchasers of new and used motor vehicles that do not function properly and which have to be returned repeatedly to the dealer for repairs.

  5. Cons to Purchasing a New Car • The minute you drive off of the lot, your new car loses 11% of its value. • Higher price, higher monthly payments. • Rapid depreciation in the first few years of ownership. New car buyers absorb the bulk of a vehicle’s depreciation. • During the first 5 years the a new car can depreciate by 15% - 25% each year! • The exception is very high demand vehicles that are in short supply. • Less price variation between same make and model.

  6. Cons to Purchasing a New Car Go to: http://static.ed.edmunds-media.com/unversioned/img/depreciation-infographic/how-fast-does-my-new-car-lose-value-2.jpg

  7. Pros to Purchasing a New Car Lower price, lower monthly payments. Major depreciation has already occurred. (After five years the car is worth 37% of the original purchase price)* More price variation between similar makes and models. Even greater choice.

  8. Cons to Purchasing a Used Car Greater risk: Private sellers and many dealers will rarely offer the assurance of a strong warranty. Hidden past unknown. Higher financing rate (interest). Limited leasing options (Actually a positive). No, “Lemon Law” coverage. Information supplied from autobytle.com, carfax.com, etc. (Might not be accurate info!)

  9. Points to Consider When Purchasing a Vehicle Ownership Costs: gasoline, monthly car payments, maintenance, repairs, and insurance New vs. Old SUV vs. Compact Fuel Efficiency: www.fueleconomy.gov. Year Make Model http://www.cars.com/go/advice/Story.jsp?section=buy&subject=cost&story=opCar

  10. Average Mile Driven Assume you will drive about 15,000 a year. You need to think about where you are going to live and how many miles you will drive to work.

  11. Car Research • www.fueleconomy.gov • www.kbb.com • www.carfax.com • Auto Insurance Sites: • GEICO • State Farm Insurance • Allstate • Progressive • The General • (others)

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