Getting+a+Car

**__ Monday, November 24: Researching an Automobile __**
// 1. What three places can an individual purchase a vehicle? // // 2. What are the seven steps to the planned buying process? // // 3. How does prioritizing wants benefit the consumer when purchasing a vehicle? // // 4. What two ways can pre-shopping research be performed? // // 5. What are vehicle options? (List two as examples) // // 6. What are three costs involved with owning a vehicle besides the actual price? // // 7. What is the goal of comparison shopping? // // 8. What are the keys to negotiations when working with a seller? // // 9. Where should the consumer make a decision on which vehicle to purchase? // // 10. What things should the consumer think about after making the purchase? //
 * #1: Read the [|information]provided by Family Economics & Financial Education, University of Arizona. Answer the following questions using complete sentences. Place in your class folder. **

// - H ow will the vehicle be used? Drive to school, drive to school activities, hauling items, carrying friends, drive to work, traveling, carrying family members, recreations and sports, other (identify) // // - Estimate the number of miles you will drive (weekly, monthly) // // - What kinds of road will the vehicle be driven on? Highway, off road, rural, gravel, city/town, snow conditions, other (identify) // // - Where will the vehicle be parked most of the time? Driveway, parking lot, street, garage, other (identify) // // - How will the vehicle be paid for? // // - Who will carry the insurance policy? // // - Do you qualify for any insurance discounts? Good student, nonsmoking, driver's education, no past accidents or tickets, other (identify) // // - What options would you like in the vehicle? (CD player, cruise control, power locks, power windows, air bags, etc) List at least 5 options. Now rate those options based on priority. (1-highest) //
 * #2: Make a list of what you want/need in a vehicle. Consider the following: **

// - Review your responses and summarize your vehicle wants by completing the following sentence by identifying five transporation needs. // // For example: a four-wheet drive truck with large hauling capacity, automatic transmission, extended cab and standard features. **Your summary should be in your class folder. Use an appropriate subject on your Google Doc.** //
 * "Based on my responses, the following type of vehicle would be best suited for me . . . " **

Today you are doing some comparison shopping for a vehicle based on your needs and responses from Monday's work. For simplicity, you have an annual income of $28,000. You have a down payment of $900, if you choose to use it. You have no vehicle for trade-in.
 * __ Tuesday, November 25: Vehicle Shopping __**
 * Using a Web site to determine a price range of vehicles which fits your budget. Choose 3 vehicles to compare. Record the make and model for all choices. **


 * Create a table comparing your three choices. List make, model, year, options, any warranty, gas mileage, price, and any other options you need to include. You will also note your monthly payment once you calculate it below. Place this document in your class folder **


 * Now, go to [|Edmunds Auto Loan Calculator] or [|Bankrate Autol Loan Calculator]to find your monthly payments. You may want to compare who give the best rate. We will not consider insurance costs right now, but realize that will impact your decision in which vehicle to purchase! **


 * One final step: Click on '[|Auto Loan]'. Read the information provided by Family Economics & Financial Education, University of Arizona. Then go to [|Kelley Blue Book] and [|Edmunds] to see the dollar value given to each vehicle based on it's year, model, and condition. Do your choices fit what the 'going value' is? **

//1. According to your chart, which vehicle should you purchase?// // 2. Which vehicle would you buy? Explain why. // // 3. Would you be satisfied with your choice? Why or why not? // // 4. If you were to complete this process again, what would you do differently? // // 5. What surprised you about this research process? //
 * Review your information and summarize your vehicle choice by answering the following questions. Place the document in your class folder. Use an appropriate subject for your document.**


 * Read //"[|New vs. Pre-Owned]" Identify the advantages and disadvantage of each. Now consider "Leasing vs. Purchasing" (page 2 of the article). Do you think you would prefer to purchase or lease a vehicle? Why? If you were to describe the ideal candidate for leasing a car, what would that buyer's characteristics include?// ** //Place your document in your class folder.//

**__ Monday, December 1: __**
1. What is a cosigner? What happens to a cosigner if the original borrower does not make the payments? // 2. What is a lender? Name four lender options. // // 3. What consumer rights act requires clear disclosure of key terms and all costs in lending agreements? // // 4. Name two items lenders are required by law to disclose to consumers. // // 5. Define negotiated price. // // 6. What variable is dependent on the down payment and/or trade-in? // // 7. What measure is the time period of an auto loan usually expressed? // // 8. Define total cost of the loan. // // 9. Define total purchasing cost. // // 10. Rule of Thumb: What happens to the principal loan amount if the consumer has a larger down payment? // // 11. What are the three variables needed to calculate the cost of a loan? //
 * #1: Review your reading from Tuesday[[file:///C:/Users/jgrams/Downloads/AUTOLOAN.pdf| (]][|Auto Loan.pd]f). Answer the following questions. Place in your class folder. **

//12. Changing the Down Payment: $7,500 negotiated price; 8% APR compounded monthly; 3 years// // A. $1,000 down payment // // B. $2,500 down payment // // For each, idenitify the principal loan amount, interest paid, monthly payment, total loan amount //
 * #2: Calculate the costs involved with an auto loan given the following situations: **

A. 8% APR compounded monthly B. 10% APR compounded monthly For each, identify the principle loan amount, interest paid, monthly payment, total loan amount 14. Changing the Time Period: $7,500 negotiated price; $2,500 down payment, 8% APR compounded monthly A. 3 years B. 5 years //For each, identify the principle loan amount, interest paid, monthly payment, total loan amount//
 * 3**. Changing the APR: $7.500 negotiated price; $2,500 down payment; 3 years

15. 12 monthly payments; principle loan amount = $15.000' 3.99% APR; time period = 3 years; interest paid = $940.55 //Calculate the monthly payment and total loan amount// 16. 12 monthly payments, principle loan amount = $7,500; 8.25% APR; time period = 3 years; interest paid = $991.99 //Calculate the monthly payment and total loan amount//
 * 3: Calculate and complete the necessary items using any online auto financial calculator. **

**__ Wednesday, December 3: Auto Insurance __**
//1. What is risk?// //2. Who is the arrangement of auto insurance between?// //3. What type of contract specifies the terms of insurance?// //4. What fees are found in an auto insurance policy?// //5. What is the purpose of auto insurance?// //6. What is liability insurance?// //7. What types of liability occur from owning and operating a vehicle?// //8. What type of insurance pays for hospital and medical bills?// //9. What is uninsured/under insured motorist insurance?// //10. Under what situations would uninsured/under insured motorist insurance be needed?// //11. What type of insurance provides protection for damages caused to a vehicle?// //12. What types of coverage are available for physical damage insurance?// //13. What factors influence insurance rates?// //14. How can an individual save money on auto insurance?// //15. What is the relationship between risk and insurance?// //16. Policy limits for liability insurance are usually quoted with three figures such as 25/50/10. Explain what each figure means.// //17. The snow was coming down heavily and the roads were becoming icy. As Jill came around the corner, her car went into a skid and came to rest in someone's yard. The car went through a chain link fence before it stopped. What coverage would pay for the repair of the fence and damage to the yard?//
 * 1: Reading about [|Auto Insurance] to answer the following questions. Answer using a Google Doc that is saved in your class folder. **

//18. Mary and her friends were talking and laughing while driving to school. When the car in front of Mary stopped, Mary did not notice and ran into the back of the car. A passenger in Mary's car was injured when she hit the windshield. What coverage would pay for the injuries to the passenger? What coverage would pay for the medical bills for the driver of the car Mary hit?//

//19. Returning home one evening, Jim momentarily lost concentration. When he looked back to the road, he could not avoid hitting a deer crossing the road and damaged his vehicle. What type of insurance coverage would pay for the damage to his vehicle?//

//20. __Interpreting__ [| an Insurance Policy]//

//21. Research the Iowa Requirements for Auto Insurance:// //If you buy automobile insurance in the state of Iowa, your policy must include minimum liability coverage of. . .//

**__ Thursday, December 4: __**
Class Discussion -- Auto Insurance and Reading an Auto Insurance Policy Review all "vehicle" information. Test will be Friday, December 5.

**__ Friday, December 5: __**
VB-PF simulation "Buying a Car"
 * [|Buying a Car]
 * [|Buying a Car worksheet]

**__ Monday, December 8: __**
TEST