Buying, Owning & Insuring a Car

Buying a Vehicle

Buying a Car

• Having a Vehicle gives you a lot of Freedom but carries a lot of Responsibilities.

• Do you need a vehicle?

• Can you afford to own a vehicle?

Would you buy a green car or a pink car?

• What is a green car?

• Hybrid or electric

• If every one in the USA bought a pink car, what would we have?

• A Pink Car Nation!!!

The Cost of Owning a Car

• Purchase Price. Shop around, compare, Check Ads & Internet

• Financing – Look around for the best loan rates.

• What is depreciation?

• How much did you pay for the car? What is the Blue Book? What is the Blue Book value today?

Other Cost of Owning a Car

What kind of car should I buy?

• Examine your needs, wants, and your budget. • Ask yourself these questions:

• What will I need the vehicle for?• Do I need passenger and cargo capacities? Will

I need to tow anything?• How many miles will I drive each year?• Will I use the vehicle more for short trips or long

trips?• How long will I expect to keep the vehicle.

Vehicle Size

Buying a used car video

Buying a Used Car

• You can buy from a used car dealer, a new car dealer or a private owner.

• A new car dealer may provide a Warranty. What is a Warranty? Read the Warranty carefully.

• A used car dealer may have a large selection of used cars.

• A private owner may cost less but will seldom repair or give you a warranty.

Buying a Used Car

• Check the Blue Book.

• If possible, Talk to the previous owner.

• Outside and inside checks.

• Test drive.

• Have the vehicle inspected.

Insurance

• What is the Financial Responsibility Law?

• What is Liability Insurance? What are the 2 kinds of Liability Insurance?

• Bodily-Injury Liability covers someone's injuries (or Death)

• Property-damage Liability covers Property damage (Like another car)

• What is Collision Insurance?

• Collision Insurance covers you if you are at fault. Pays to repair or replace your car less the Deductible.

• What is a Deductible?

• Deductible is the amount you agree to pay towards the repair or replacement of your car. ( Higher deductible = Lower Premium)

What is Comprehensive Insurance?

What kind of insurance would cover these situations?

• Windshield shatters from a rock• You run over your friends puppy.

• You hit someone’s mailbox.

• You hit a pedestrian.

• Your car is hit by hail.• Your vehicle will not start after

school.• Your car hits a tree & you are

injured.

• Comprehensive• Property damage

liability• Property damage

liability• Bodily injury

liability• Comprehensive

• Towing

• Collision & Medical payments

What kind of insurance would cover this?

What kind of insurance coverage would you need for this?

What kind of insurance would you need for this?

Factors that Determine Insurance Rates.

• Driving Record• Age• Miles Driven• Driver Gender• Marital Status• Type of Vehicle• Where driver lives• Drivers Claim Record

Environmental Concerns

• Exhaust Gases – Carbon Dioxide “Greenhouse effect”– Carbon Monoxide can cause drowsiness and

death– CFCs older cars used Freon for air

conditioners

How Can Drivers Help the Environment

• Mass transit

• Car Pool

Alternative Fueled Vehicles

• Solar-powered vehicles

• Electric Cars

• E85

Police stop on expressway