Buying a Car

Buying your first car

Lesson Objective:

​Review Car Buying Terms and Review How to Purchase

buying a car

• Is a stressful process

• Finding your car can be long and difficult decisi

​Let's Review some terms...

​

Cars

Cars can be expensive and every year thousands are stolen or destroyed.

Multiple Choice

What is the interest rate on a loan called?

• APR-Accrued Percent Range

• APR-Annual Percentage Rate

• APR-Annual Primary Rate

• APR-Annuity Preliminary Record

Multiple Choice

How many cars do you think are stolen or destroyed each year in Queensland

• 1000

• 5000

• 4593

• 10118

• 6746

Multiple Choice

Which is the term for the reduction of value in the car over time usually based on the wear and tear caused by driving the car

• Principal

• True Market Value

• Warranty

• Depreciation

• none of these

Car costs

• every car is different and it’s running costs can very over the type of car, engine and any modifications on it.

• A car can also need repairs on the parts which eventually break or have to be replaced.

• Eg. Headlights, spark plugs, cabin air filters, oil filters, belts, aircon, oil, battery, tires, break pads, brake fluid, wiper blades.

Multiple Choice

The money you pay upfront when getting a car loan is called the...

• principal

• down payment

• interest

• APR

personal preferences

Every one has different styles and a car can be used to frame that a car can be fast or comfortable it can be any colour or be any size.

Multiple Choice

This is the company that makes the cars we drive (Ford, Toyota, etc.)

• msrp

• model

• Amazon

• manufacturer

Multiple Choice

What is the most common first car in south east Queensland

• Kia swift

• Mazda 3

• suzuki swift

• Kia rio

• r34 with a twin-turbo VR38 V6 4.2 litre engine swap

Multiple Choice

This is the assurance that your car will be protected from any major issues in case something happens before the number of years you own the car or the number of miles you drive it.

• msrp

• warranty

• depreciation

• true market value

What to look for in a car

When buying a car you should check the vin number, the vin is located inside the vehicle on the bottom left or right of the front windshield. The vin or vehicle identification number can give you the cars history.

Multiple Choice

This is the price of the car that includes the fees and other charges that are added to the price of a car but is often not included in the advertised price.

• msrp

• sticker price

• true market value

• principal

Vehicle history

Vehicles can be stolen and then sold a quick check of the vehicle on the ppsr website. ppsr website displays the cars record and title holder.

Multiple Choice

When borrowing money from a bank, this is the extra amount you need to pay in addition to the amount you borrowed

• APR

• principal

• msrp

• down payment

• interest

Title

When buying a car you must ensure that the title of the car is in your name or an agreement must be met about the matter

Multiple Choice

This is the amount that a car manufacturer advises dealers to charge for a vehicle. It's just the starting point in negotiations at a car dealership.

• MSRP - Manufacturer's Suggested Retail Price

• Loan

• Principal

• Down Payment

fuel economy

• The cars range is identified by calculating the litres per km.

• The cars fuel type must also be a readily available and cheap source of fuel.

Multiple Choice

This is the measure of how far a car can travel using exactly one gallon of gas. This figure helps you to compare cars based on their efficiency

• APR

• MPG - miles per gallon

• FDIC

• none of these

Multiple Choice

The average usage of fuel per km

• 7 litres

• 1 litre

• 4 litres

• 8 litres

• 9.1 litres

Work

Your job may dictate the type of car you will purchase. Many Jobs may have different transportation requirements and this should be an aspect that should be met.

Open Ended

Marisol wants a brand new Toyota Corolla. She is currently a full-time student at a local university and works part-time a Starbucks.

What advice would you give?

stress on your car

• If your job requires you to commute regularly the fuel prices and efficiency will influence your price range

• Driving without breaking anything also cost you in fuel

Multiple Choice

True or False: You should figure out in advance if you can afford ANY car before purchasing one.

• True

• False

• Maybe

Multiple Choice

What is the most common car in Queensland?

• Toyota carolla

• Toyota hilux

• Mazda 3

• Mitsubishi triton

Multiple Choice

if you have to get a loan to purchase a vehicle it's known as...

• financing
• proof of insurance
• cash payment

Use

The car you choose will also be influenced by how you will use the car and the activity’s the car will be exposed to.

Multiple Choice

Which type of vehicle is one of the most suitable vehicles for hauling, towing and off-roading?

• wagon

• van

• pickup truck

• sedan

A cars value

• A car is an asset which can help you in life

• But it also loses its value over time

• A car is the most depreciative asset you will ever own

Multiple Choice

Sylvia is a first-time car buyer without an established credit history, so she is going to be charged a high interest rate. What could she possibly do to get a lower interest rate?

• agree to a lease term of more than five years

• take a financial literacy class at a local college

• Get a co-signer with good credit, such as a parent

• open at least three other credit accounts at the same time

Multiple Choice

What is meant by "Certified Pre-Owned"?

• It's a scam tactic to make you think it's a new car

• It means that it is certified that it has been driven by another driver

• It means someone else owns it

• It means that the car is used but may have a limited warranty due to low wear-and-tear condition

• none of these

Poll

Have you learned something about car-buying that you didn't know before?

• Yes.

• No

• A little, I suppose. I don't have a car.