Car Powerpoint
Transcript: “By failing to prepare, you are preparing to fail” -Benjamin Franklin So many choices! 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! Step 4 – know what your car is worth Does the rate really make a difference? 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 What are all of these rates? Step 2 – Now that you know your budget, it’s time to consider what car fits into it! How does the term affect my payments? First time Auto Buyer Options to consider: Invoice- Includes dealer cost, and will often include the same information as the MSRP. Car maintenance averages $65 a month Some months you may pay nothing, and others you may pay hundreds I’m buying my first car! Where do I start? Have never purchased a car before Often have little to no credit Are often considered a “risky” lender Buying a New Car I’m preapproved! 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 Step 1 – See what you can afford Financing or paying cash? Include all of your expenses Be realistic Consider additional costs 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 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 Step 4 – know what your car is worth Invoice/Dealer Cost Insurance 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. Prequalify and Preapprove What is the car’s value? Why does the term matter so much? I’m preapproved! I know what I can afford, now what? 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 What makes up my payment? Gas Create a budget Buying a Used Car Maintenance Key points to remember: What kind of car should I get? www.kbb.com Can help you find the value of your car Have your own mechanic check it out 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? I found a great car for me, now what? The Road Ahead Your First Car MSRP Average price for car insurance for teenagers is $1200.00 per year Financed Vehicles must have full coverage Possible discounts 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 Step 3 – How are you going to pay for it? Pay Cash Finance For example, if you find a car for $15,000 and finance it with an interest rate of 6% fixed.... GAP Insurance -When your car is totaled, and the value of your car is less than the insurance covers Extended Warranty How does the term affect my total cost? MSRP How many passengers? How often and how far will you be driving? What fits into my budget? Used or New?
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