CareerStart.ai
Article Slides
Your first big purchase — usually a car
Unit 4 — Planning ahead
 Unit 4 — Planning ahead
Your first big purchase — usually a car
 Your first big purchase — usually a car
The sticker price is the smallest number in a car purchase.
 The sticker price is the smallest number in a car purchase.
Lesson 8 of 8 — about 14 minutes — CareerStart.ai Financial Literacy
 Lesson 8 of 8 — about 14 minutes — CareerStart.ai Financial Literacy
What you will be able to do
What you will be able to do
 What you will be able to do
By the end of this lesson
 By the end of this lesson 1
Identify the full cost of ownership
 Identify the full cost of ownership 2
Explain how loan term affects total cost
 Explain how loan term affects total cost 3
Prepare before walking onto a lot
 Prepare before walking onto a lot
Total cost, not monthly payment
Unit 4 — Planning ahead
 Unit 4 — Planning ahead
Total cost, not monthly payment
 Total cost, not monthly payment
Dealers negotiate in monthly payments because a longer loan makes any price look affordable. Stretching a loan from 48 to 84 months lowers the payment and raises the total substantially — and for much of that time you owe more than the car is worth.
 Dealers negotiate in monthly payments because a longer loan makes any price look affordable. Stretching a loan from 48 to 84 months lowers the payment and raises the total substantially — and for much of that time you owe more than the car is worth.
Ownership also costs beyond the loan: insurance (expensive for young drivers), fuel, maintenance, tires, registration, and repairs. A $200 payment on a $450 monthly reality is how budgets break.
 Ownership also costs beyond the loan: insurance (expensive for young drivers), fuel, maintenance, tires, registration, and repairs. A $200 payment on a $450 monthly reality is how budgets break.
Arrive prepared
Unit 4 — Planning ahead
 Unit 4 — Planning ahead
Arrive prepared
 Arrive prepared
Get pre-approved for financing at a bank or credit union before you shop; it gives you a rate to compare against and removes the dealer’s strongest lever. Know the vehicle’s market value. Get a used car inspected by an independent mechanic — it typically costs around a hundred dollars and regularly saves thousands.
 Get pre-approved for financing at a bank or credit union before you shop; it gives you a rate to compare against and removes the dealer’s strongest lever. Know the vehicle’s market value. Get a used car inspected by an independent mechanic — it typically costs around a hundred dollars and regularly saves thousands.
And be willing to leave. That is the only real negotiating power anyone has.
 And be willing to leave. That is the only real negotiating power anyone has.
Key term: Upside down
Key term
 Key term
Upside down
 Upside down
Owing more on a loan than the item is worth. Common with long car loans, because vehicles lose value faster than the balance falls. It becomes a serious problem if the car is totaled or you need to sell.
 Owing more on a loan than the item is worth. Common with long car loans, because vehicles lose value faster than the balance falls. It becomes a serious problem if the car is totaled or you need to sell.
Why it matters at work
Why it matters at work
 Why it matters at work
Reliable transportation is a job requirement in most of this region — which is exactly why it is worth buying carefully rather than quickly.
 Reliable transportation is a job requirement in most of this region — which is exactly why it is worth buying carefully rather than quickly.