The Car Buying Process

[Pages:26]The Car Buying Process:

Don't Get Taken for a Ride

Presented By: Gregorio Alcantar M.S. `06

*If you can hear the Matador Fight Song in the background, then your audio is working!

Before we begin...

1. In the chatbox, please input whether you are a CSUN Student OR Alumni

2. Please take a moment to follow the link in the chatbox to take our survey after the presentation.

4 Steps to the Car Buying Process

BUDGETING

PICKING A CAR

NEGOTIATING

MAINTENANCE

BUDGETING

? Before you start shopping for a car, determine how much you can afford to spend.

? Usually begins by reviewing your budget ? Budget - a plan on where your money is going

Car Payment

$$

BUDGETING

How much can you afford? (Be real!)

Guidelines You should not have a car payment

that can take up more than 20% of your discretionary income after paying your regular expenses

$2000 discretionary income = $400 car payment

PICKING A CAR

Research

? Research is important because it gives you bargaining power

? Pick a good car (i.e. reliable) - NOT shiny, or with bells and whistles

? Review reliable sites for information



PICKING A CAR

How much car do you need?

? Type: Compact, Sedan, Sport, Truck, 2-door, 4-door

? Will you drive it much (e.g., living close to campus-walk)

? Car Features: Apple's Carplay, heated seats, Power Windows

Identify your Needs vs. Wants

? Prioritize (you may need to trade off some of the wants for a lower price

? Select 3 or 4 choices that meet your needs and research the features of each car

? Make a pros and cons list ? Compare your choices and weigh which one is the best option for you. ? Any car you evaluate MUST fit within your budget (STORY about guy

who couldn't sleep)

PICKING A CAR

Lease vs. New vs. Used

LEASE

NEW

USED

? Agreement w/ dealer to use property (the car) for specified time and mo. payment

? Don't own car, only renting ? Car available for purchase at

end of lease term (at expected value at end of lease term) ? People can afford to lease expensive cars than they would be able to finance ? Advantage: No down payment, no trade-in to worry, new car for few years, BUT you own NOTHING and pay penalties for excess mileage, wear and tear

? More expensive

? Loses value when driven off lot

? Less maintenance and thus save a lot on repairs

? OWN vehicle

? No smog checks for 7 years

? Can save you money

? Likely to need more repairs

? Bought at actual value current for car

? Keeps Warranty (if within 3 years/36000 miles

**Don't assume you have to buy a used car - if right new car, right price, and keep for a long time -

save hundreds in long run

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