PDF Lesson One: Buying a New or Used Car a.org

Lesson One: Buying a New or

Used Car

Consumer Education

Budgeting for a Car Purchase

? Know Your Budget

? What are your fixed expenses?

? How much can you afford for a vehicle?

? Recommend no more than 20% of monthly take-home pay.

? Down Payment or Trade-In?

? Double-check your estimate by prequalifying for a loan at a:

? Bank ? Credit Union

Consumer Education

Vehicle Expenses

? Cost of the Vehicle ? Sales Tax ? Destination fees, if applicable

(shipping) ? Routine Maintenance

? Oil changes and lubrication ? Tire rotation ? Tune-ups ? Coolant, wiper blades, filters, etc.

? Insurance ? License & Registration ? Unexpected Repairs ? Gas ? Depreciation

Consumer Education

New vs. Used

? How much is a new car worth 5 years from now?

? Most Cars: 22 -25% of the original value

? Honda Accord or Toyota Camry: 60% of original value

Source: Kelly Blue Book ()

Consumer Education

Advantages

New Cars Disadvantages

?Zero miles or close ?Newest safety features

?Higher purchase price

?Instant depreciation

?Order to your specifications ?Possible high pressure sales

?Few/little repairs

?Impulse buying

?Warranties

?Unwanted features

Consumer Education-Unit 2

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