BUYING AND OWNING A VEHICLE

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CHAPTER 16

• BUYING AND OWNING A VEHICLE

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CHAPTER 16

• BUYING AND OWNING A VEHICLE
• 16.1 BUYING A VEHICLE
• 16.2 INSURING A VEHICLE
• 16.3 ENVIRONMENTAL CONCERNS

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BUYING A VEHICLE

• DO YOUR NEEDS REALLY JUSTIFY OWNING YOUR OWN CAR?

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CAN YOU AFFORD IT?

• PURCHASE PRICE
• DEPRECIATION
• Vehicles value steadily drops over time
• FINANCING
• Shop around and look for best rate
• OPERATING COSTS
• Fuel, oil, tires repairs, replacement parts,
  licensing fees, registration, insurance, taxes,
  etc..

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WHAT KIND SHOULD YOU BUY?

• What will it be used for?
• Passengers, cargo?
• How many miles?
• Keep it how long?

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VEHICLE SIZE

• Smaller, lighter better gas mileage but does
  not offer as much protection
• Smaller easier to maneuver
• Larger more comfortable but more costly
• Larger greater capacity for passengers

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OTHER DECISIONS

• ENGINE
• Smaller more fuel efficient
• Larger more powerful for working
• TRANSMISSION
• Most automatic with overdrive
• Manual last longer, harder to learn
• OPTIONAL EQUIPTMENT
• Technological advancements means lots of toys!

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LEASING

• Cheaper than buying
• When lease is over you
• Return the vehicle and lease another
• Purchase the vehicle at reciprical value
• Return the vehicle with no obligations

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BUYING USED VEHICLE

• Buying from private owner may cost less but no
  warranty
• Used car dealers usually have a better selection
• Some now offer certified pre-owned warranties
• Read warranty carefully
• How much should you pay?
• Kelleys blue book

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CHOOSING A USED VEHICLE

• Make sure looks good and is in good mechanical
  condition
• Need to know if it was ever involved in collision
  before
• If possible talk to previous owner

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OUTSIDE AND INSIDE CHECKS

• Doors and locks
• General appearance
• Fluid leaks
• Evidence of collision damage
• Condition of seats
• Lights and accessories
• Mileage
• Pedals steering
• Spare tire and jack
• Hoses, belts, and fluids
• Battery and cables

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TEST DRIVE

• Always test drive make sure everything works
  and the car drives well.

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HAVE VEHICLE INSPECTED

• Take it to a trusted mechanic and have them
  inspect it.

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INSURING THE VEHICLE

• Every state has financial responsibility laws.
• Requires you to prove that you can pay for damage
  that you might cause

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KINDS OF INSURANCE
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LIABILITY INSURANCE

• Protects the driver who caused the collision.
• Provides compensation for a harm or wrong to a
  third party

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BODILY INJURY INSURANCE

• Covers the driver who is at fault against claims
• Claims for injuries to other people

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PROPERTY DAMAGE INSURANCE

• Protects the driver who is at fault against
  claims for damages to another persons property,
  up to specified limits

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MEDICAL PAYMENT INSURANCE

• Pays medical and funeral expenses for bodily
  injuries sustained by occupants in the insured
  vehicle

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NO-FAULT INSURANCE

• In some states, people can recover losses and
  expenses from their own insurance company
  regardless of who is at fault

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COLLISION INSURANCE

• Provides coverage to pay the costs of repair or
  replacement of your vehicle

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COMPREHENSIVE INSURANCE

• Pays for damage to your vehicle for reasons other
  than collisions

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UNINSURED AND UNDERINSURED MOTORIST

• Protects you if you are hit by another driver who
  has too little or no insurance.

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INSURANCE RATES

• DRIVING RECORD
• AGE
• MILES DRIVEN
• GENDER
• MARITAL STATUS
• TYPE OF VEHICLE
• WHERE DRIVER LIVES
• DRIVERS CLAIM RECORD

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PREMIUMS
The amount you agree to pay each
month/quarter/year for insurance coverage
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DEDUCTABLE

• A set amount that you agree to pay in the event
  of a claim before the insurance company pays the
  difference.
• HIGHER DEDUCTABLE LOWER PREMIUM
• LOWER DEDUCTABLE HIGHER PREMIUM

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So if.

• Mr. A was in a collision
• The damage to his cars was 4,500
• His deductable was 500
• How much dies the Insurance company pay?
• How much does Mr. A pay?

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REDUCED PREMIUMS

• GOOD GRADES
• NO CLAIMS OR CONVICTIONS FOR THREE YEARS
• SAFETY FEATURES

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ASSIGNED RISK INSURNACE

• Drivers who have had their insurance cancelled
  due to poor driving record
• Extremely high premium for several years

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ENVIRONMENTAL CONCERNS

• EXHAUST GASES
• CARBON DIOXIDE
• CFCS

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DISPOSAL OF VEHICLE PARTS AND FLUIDS

• Vehicle batteries, oil filters, oil, gasoline,
  transmission, fluid, brake fluid, and antifreeze
  are hazardous substances.
• Never dump or put these in the garbage.
• Service stations usually provide reclimation for
  these used products

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HOW CAN YOU HELP?

• MASS TRANSPORTATION
• CAR POOLING
• ALTERNATIVE FUEL

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Mr. As Insurance Property Damage Liability
10,000 Bodily Injury Liability 30,000 per
person/60,000 MAX Medical Payments 30,000/60,000
MAX Collision 20,000/ 500 deductible

1. How much will Mr. As Insurance pay for Ms. Bs
   Hospital Bills? How Much Will Mr. A pay?
2. How much will Mr. As insurance pay for damages
   to Ms. Bs Car? How much will Mr. A pay?
3. How much will insurance pay for Mr. As injuries?
   How much will Mr. A pay?
4. How much will insurance pay for damages to Mr.
   As car? How much will Mr. A pay?

Mrs. B Hospital Bills 34,000 Damage to Car 5,500
Mr. A Caused a Collision Hospital Bills
22,000 Damage to Car 6,000