Gettin’ a Car

What does it cost?How do I get it?

Real Cost of a Car

Ownership costs: insurance, finance charges, license, registration, taxes and depreciation

Operating Costs: gas, oil, tires and maintenance

Vehicle types and Cost

Sub-compact: $19.18/dayCompact: $20.25/dayMid-Size: $23.93/dayMini-van: $21.58/dayFull-size: $29.93/day

Total Costs of Loans

APR= Annual Percentage Rate (10%)Loan amount X APR X Number of years

Example: $10,000 X 0.10 X 5 years = $5,000Add the $5,000 to your $10,000 and the

total is 15,000 dollars.

What’s the monthly payment?

If the car is $15,000 loan cost in then the monthly payment is calculated by…..

Total to be paid divided by the number of months in the loan.$15,000 / 60 = $250 per month

How do they decide insurance?

Personal Characteristics:AgeGenderMarital StatusEducationType and frequency of vehicle use ( what’s

the car for)

Continued….

Geographical factor: Rural is cheaper than city

Driving Record:Accident involving death, injury or property

damageNumber and type of moving violations (total

points on record)Number of years insured with the company

Almost done…

Vehicle CharacteristicsAge of carDamageRepairTheft record (is it popular to steal)ModelColour

Insurance Coverage

Liability (40-50% of premium) Bodily-injuryProperty damage

Collision (up to 30%)Pays for damages to car as a result of

accident.Limited by deductible (the amount you pay

out of pocket before insurance kicks in)

More insurance coverage

Comprehensive (about 12%)Pays for damage caused by vandalism,

theft, hailstorms, floods etc…Medical

Covers medical payments for drivers and passengers injured in an accident

What if I don’t pay?

Rights of Creditor:Can seize carCan’t commit a breach of the peace (no

physical force or threats)Can keep or re-sell carMay not keep or sell private property within

the car. (does not include your upgrades to the vehicle)

Repossession continued

Your rights: May buy back the car by paying the full

amount owed on it plus repossession expenses

Your legal responsibility:Must pay the deficiency balance: - the

amount of debt remaining even after your creditor has sold your car