Car PowerPoint
Transcript: So many choices! What are all of these rates? MSRP Invoice/Dealer Cost Gas Options to consider: Create a budget Does the rate really make a difference? Step 2 – Now that you know your budget, it’s time to consider what car fits into it! First time Auto Buyer Principal – The price of the car you are purchasing. Interest – The percentage of the loan that you pay for being provided a loan. Term – The amount of time you have to pay back your loan. I’m buying my first car! Where do I start? Current gas prices- $4.02 per gallon Average gas mileage is 25 mpg. A trip to Seattle and back will cost you $48.25 just in gas! Often one year old cars are 20%-30% cheaper Higher insurance fees, higher DMV fees Some may still be under the factory warranty- More reliable than they’ve ever been Certified used cars History of a car can be easily traced sometimes, but not always. Negotiate First, see what you can afford Be sure to consider all expenses Pick the right car for you Preapprove and prequalify before you buy Explore your financing options Buy the car at the right price How does the term affect my payments? Invoice- Includes dealer cost, and will often include the same information as the MSRP. Budget Example Prequalify and Preapprove I’m preapproved! Step 3 – How are you going to pay for it? Pay Cash Finance Buying a New Car Prime- The lowest rate that money can be borrowed commercially Fixed- An amount that will not change, no matter if prime goes up or down Variable-The interest amount can change, depending on what prime is Step 4 – know what your car is worth Buying a Used Car Average price for car insurance for teenagers is $1200.00 per year Financed Vehicles must have full coverage Possible discounts What makes up my payment? Financing or paying cash? Include all of your expenses Be realistic Consider additional costs Car maintenance averages $65 a month Some months you may pay nothing, and others you may pay hundreds What is the car’s value? “By failing to prepare, you are preparing to fail” -Benjamin Franklin Are you able to make the monthly payments? Have you been employed for 6 months or more? Do you have credit history? How many other loans do you have? Payment history, available credit, credit history, mix of credit Level of debt- 35% Cosigner? Down payment? Key points to remember: Step 1 – See what you can afford Have never purchased a car before Often have little to no credit Are often considered a “risky” lender What kind of car should I get? I found a great car for me, now what? MSRP-Manufacturers suggested retail price; the suggested price of the car. Remember, it is a SUGGESTED retailers price, you should not expect to pay it GAP Insurance -When your car is totaled, and the value of your car is less than the insurance covers Extended Warranty For example, if you find a car for $15,000 and finance it with an interest rate of 6% fixed.... Insurance Why does the term matter so much? Maintenance Watch out for rebates and incentives Look on KBB for fair market value Negotiate for the lowest price Read everything before you buy Inspect your car before you drive it off the lot How does the term affect my total cost? I know what I can afford, now what? How many passengers? How often and how far will you be driving? What fits into my budget? Used or New? www.kbb.com Can help you find the value of your car Have your own mechanic check it out
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