Chapter 15

Buying A Car

Are You Mature Enough To Own A Car?

• The first question you should ask yourself is if you are mature enough to accept the responsibility that goes with owning and driving a car

Why Do You Want A Car?

• Cars make you more independent• They save you time getting from one place

to another• Owning a car makes you feel more grown-

up• Going places in your own car is fun

Do You Need Your Own Car?

• Some questions you should consider are:– How far will you be traveling each day– How do you get to these places now– How available is public transportation– Is there a family car available to you

• If you answers to those questions indicate that you don’t just want a car, you really need one, you still have other questions to consider.

Can You Afford A Car?

• You will need to examine all costs of owning a car such as purchase price, fuel, tune ups, and repairs. You also must pay for insurance, licensing and registration, tolls, and property taxes.

What Personal Factors Influence the Kind of Car You Need?

• How many passengers will you usually have?• What age are your passengers?• How many miles do you expect to drive each day,

month, or year?• Will you use the car to carry heavy loads or tow a

trailer?

How Can You Select a Car That Is Safe?

• Does the car have air bags?– In head-on crashes, most fatalities occur when the

driver hits the steering wheel and suffers chest injuries. Air bags help prevent such injuries.

• What is the death rate per 10,000 registered models of the car?– If the death rate of a particular model is more than 2

per 10,000 registered cars, think twice before buying.

• How does the car hold up in a crash test?– Crash-test data is available from the Insurance

Institute for Highway Safety.

• Does the car have antilock brakes (ABS)?– Cars with antilock brakes can stop in a shorter

distance on slick surfaces than can cars without these brakes.

How Can You Check a Car’s Comfort Features?

• You will spend a lot of time in your car, so check to be sure that it’s comfortable for you.

• Get into the car. Does it fit you?• Adjust everything and ask to take the car for a test

drive• Be sure that you can reach all accessory switches and

dials easily and that the seat is comfortable enough that a long drive wont leave you with an aching back

How Van You Determine Whether a Car is Fuel Efficient?

• Fuel consumption depends on a car’s weight, type of engine, design, and type of transmission, among other factors.

The Weight of the CarYou cannot always judge a car’s weight just by looking at

the car. Find the exact weight. The less weight an engine pulls, the more efficiently it works.

The Type of EngineThe more cylinders in the engine, the more fuel it uses.

Unless you will be going up steep hills a lot, a 4- or 6-cylinder engine probably will meet the needs of most

intermediate-size cars.

The Design of the CarOne key to fuel economy is how well the vehicle overcomes

air resistance. A streamlined car has less air resistance than a car with a boxy design.

The Type of TransmissionWhen used correctly, a manual transmission consumes less

fuel than an automatic one.

Extra EquipmentFeatures such as air-conditioning also increase fuel use.

What to Know About Buying a Used Car?

• You can buy a used car from a private owner or a used car dealer. Buying from the owner can cost less, but you will not get a warranty. Dealers, on the other hand, often offer warranties.

• Before buying a used car, test-drive it. Shaky steering and a wobbly ride may mean misaligned front wheels or the need for wheel balancing. Also check for other red flags or issues.

What to Know About Financing a Car

• To finance the purchase of an automobile, you need to know where to get a car loan and the amount of the monthly payments.

Where to Get Financing• If you are a full-time high school student, you will not be

able to obtain financing on your own. The lending institution will require that an adult be responsible for repayment.

• Drivers finance their cars through banks, credit unions, finance companies, and, if buying a new car, often through the dealer.

The Amount of Monthly Payments• Different sources of financing often charge different

interest rates. Compare rates to get the best deal.

• The amount of loan is based on the cost of the car.

• The amount of time you have to pay back the loan is based on whether the car is new or used. Used car loans have to be re-paid more quickly than new car loans.

• You should try to pay as much as you can on the down payment and borrow the rest. The lender will give you a schedule of monthly payments.

What Kinds of Insurance Might You Need?

Liability Insurance• Liability insurance is proof that you will be financially

responsible if you cause damage to property or injure other people. Many states require drivers to prove they have a certain amount of liability insurance before theirs cars can be registered

• Liability insurance protects you against claims if you are at fault in a collision. It also helps you to pay for an injury or property damage caused by your actions. It protects you and anyone else who has permission to drive you car.

Uninsured Motorist Insurance• Although many states require that car owners have

liability insurance and show proof of it before their cars can be registered, some drivers allow their policies to lapse or cancel their policies.

• If you are involved in a collision with such a driver, or if you are involved with a hit-and-run driver, uninsured motorist insurance protects you.

Collision Insurance• Collision insurance pays for damage to your car even if

you are to blame in a crash or are involved with an uninsured driver.

• Collision insurance also covers repairs if your car is damaged in a parking lot or in a parking space on the street.

Comprehensive Insurance• If your car is damaged by anything other than a collision,

comprehensive insurance pays the bills. For example, comprehensive insurance covers theft or damage caused by fire, explosions, natural disasters, or riots.

Medical Payment Insurance• Medical payment insurance covers medical, hospital, or

funeral costs regardless of who is at fault. The amount paid is determined by the policy and usually ranges from $1,000 to $5,000 per person.

No-Fault Insurance• In this system, your insurance company pays your medical

bills and any other costs resulting from a collision-related injury.

• The system is called no-fault because blame is not considered before the insurance company pays your bills.

• In very serious accidents, the injured can still go to court and sue the person responsible for damages.

Towing Insurance• Towing insurance covers the costs of on-road repairs and

the cost of having your car towed.

What Factors Determine the Cost of Insurance?

• You purchase car insurance by paying a premium, or a set amount, to an insurance company, usually every six months.

• Insurance companies rely on statistics to determine their rates. The statistics indicate the likelihood of certain types of cars being involved in a crash.

• Your age: Drivers under the age of 25 pay the high premiums

• Your driving record: Convictions, collisions, and insurance claims can increase your insurance costs.

• Mileage per year: The farther you drive, the more your insurance will cost.

• Where you live: If you live in a city, your insurance costs will be greater than a person who lives in the county.

• If you drive to work: Carpooling reduces the cost

• Your gender: Women pay lower rates than men.

• Your marital status: Young married men pay less than men of the same age who are single. Young married men are involved in fewer collisions than single men.

• The value of your car: The more expensive the car, the greater the cost of insurance

• The type of car: A sports car will cost more to insure.

• Many insurance companies offer discounts to students who have completed a driver education program and to students whose grade average is B or higher.

Ashley Jones