Transportation Choices

Focus Questions/Objectives

1. What is mass transit?

2. What is the most common form of private transportation?

3. What are some of the costs that come with owning a car?

Public Transportation

• Urban

• Intercity

• overseas

Urban Transportation

Mass transit public transportation in an urban area

Example NJ Transit train, bus, and light rail

Pros

Low cost

Reduce traffic congestion as well as pollution

More people can be moved

• Commuters are people who must travel some distance between their homes and where they work

• Commuter service public transportation systems that bring people from the suburbs or nearby communities into cities

Examples

Subway, ferry, rail, bus

Transportation between Cities

Intercity public transportation public transportation connecting cities, usually involving buses, trains, and airplanes

Example

Amtrak

Private Transportation

• Bicycles

• Motorcycles

• Scooters

• Car

Advantages of Motorcycles

• Fuel economy

• Freedom

• Quickness

Cars

Ongoing expenses

• Interest on the auto loan

• Insurance

• Taxes and licenses

• Routine maintenance costs

• Repairs

• Fuel costs

Car ownership

Needs and Costs

Do you really need a car?

Could you afford one? If so, what type of car can you afford?

Narrowing Your Choices

• Cars and Minivans

• Trucks

• Crossovers and SUVs

• Hybrid and EVs

How much have you saved for a down payment, and how much can you afford to borrow?

Estimating Ownership Costs

• Initial purchase price

• Loan interest rates

• Auto insurance

• Taxes

• Upkeep costs

Research the Purchase Price of Used Cars

• Used Car dealers

• CarMax

• Auto shopper

• Craigslist

• Kelley Blue Book a widely used guide to used car values

Finance Costs of a Car Loan

Car loans are available from banks, S&Ls, credit unions, finance companies, and from the dealership

Use an online calculator to determine monthly payments

Car Insurance

• Call several insurance companies for estimates

• Might be less expensive getting insurance from same company as your parents

• Good student discount

• Year, Make, and Model

• Coverages

Taxes

• Sales tax

• Registration

• Tags

Maintenance Costs

• Preventative maintenance is automotive service that keeps a car running well and prevents major problems

• Includes engine tune ups, oil changes, replacing the battery and tires as needed

• Budget $1000 for maintenance costs for a small car

Fuel Costs

Does the car require premium fuel?

Miles per gallon (MPG) the average number of miles a car travels on one gallon of gasoline

To estimate fuel costs, divide the number of miles you expect to drive by the expected MPG for the car you are thinking about.

Then multiply that result by the average price per gallon

Totaling the Cost of Ownership

• Identify the expenses that occur at the time of sale – down payment, sales tax, license fee, etc.

• Divide your yearly estimates for the other expenses – car payments, insurance premiums, maintenance, fuel – by 12 to get the monthly cost for each

• Then, add up all the monthly costs to arrive at an overall estimated monthly cost of owning that particular car

Do you need a car?

• UBER

• Walking

• Public Transportation

• Go to the website of one of your favorite auto makers, and build the car of your dreams. Then find out how much your monthly payments would be on the vehicle using the manufacturer's financing.

Assessment

1. What is the least expensive form of transportation?

2. What is mass transit?

3. What is the most common form of intercity transportation for long distances?

4. What two major factors should you weigh when you consider the decision to buy a car?

5. What is MPG and how does it influence the cost of owning a car?

1. What are the advantages and disadvantages of public transportation versus private transportation?

2. Would riding a bicycle meet most of your transportation needs? Why or why not?

3. If you determine that the car you want costs more than you can afford, what can you do to make owning that car a reality?