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Buy A Car
Challenge:Select a vehicle that is affordable (given your budget demands) and dependable. Negotiate a fair price for the vehicle. Consider the following criteria as you evaluate vehicles:
Getting Organized:STEP 1 Take stock of your life and select an appropriate vehicle. What career needs will effect the type of vehicle you purchase? Consider the following: annual mileage, commuting, passengers, payloads, weather and terrain. What family needs will effect the type of car you need? Will you need an economy size car, station wagon, full size sedan, van, truck, recreational vehicle? STEP 2 Consult the budget: How much cash do you have available for a down payment, how long will it take to raise it? How much money is available in the monthly budget to devote to a car payment. Estimate insurance. Consider how that will effect the budget.
Gathering Information:STEP 3 Research the fair price for the year, make and model of car you want. This will be a ballpark figure to help you evaluate whether the person selling the car has set the price within a reasonable range. Before checking Kelley's or Edmunds for new car prices, print out and complete this worksheet, Worksheet for Buying a New Car , to determine which option on the car you will have. Kelley's Blue Book: (used cars),(new cars) Edmunds (new and used cars) STEP 4 Shop around and get at least three quotes.
STEP 5 Develop a script for negotiating the price with either a used or new car dealer. List in detail the steps you will take to assure you'll arrive at the fair price. Include your approach to such dealer tactics and negotiation strategies as dealer's profit margin, options, the various prices (Base, Monroney Sticker, Dealer, Invoice), trade-ins, dealer financing, and service contracts. Or, to be impressive, write a dialogue with you and a dealer that employs all the dealer tricks. Automobiles Buying and Leasing Cars is the Attorney General's pamphlet on the deceptive practices used by unscrupulous dealers. These sites have plenty of tips for negotiating the fair price: Car Buying helpful tips directed especially for teenagers Shopping for a Vehicle advice from the Attorney General's Office Edmunds tips on buying new and used cars. STEP 6 Determine Financing. Use Edmunds' car financing calculator to determine approximately what monthly payment and down payment you will pay. For new cars, first select a car through Edmund's. Then follow the link to the Edmunds' car financing calculator. Sorting and Analyzing:Do you have enough samples to make an informed decision?STEP 7 Organize the information on to a chart. Use the criteria on the top of the page as well as any options you want to include. Your chart might look something like this:
* manufacturer's suggested retail price. Use another price if you wish. STEP 8 Now you are ready to analyze. Arrange the criteria in order of importance to you. Label each criterion as essential or a frill, as a potential for saving or wasting money?
Creating the Final Answer:Selecting the best vehicle for youSTEP 9 Explain to your instructor in a brief written summary, or verbally, what was the most impressive example of the car meeting your criteria? Also, state why some of the top contenders didn't meet the grade, because of which criterion? STEP 10 Obtain bids from each auto dealer, follow a prepared script and attempt to get one dealer to the target price.
Evaluation:STEP 11 Explain to your instructor in a brief written summary, or verbally, how well did the vehicle you chose satisfy your selection criteria? How close to your target price was the best bid you received? How many bids came close to your target? Be sure to revisit your monthly budget and adjust the monthly car payment figure and deduct any down payment from savings. Return to: Consumer Game | CAP | Squalicum | District |