4106 22865 05 C05 P132-172.Pdf
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Making Automobile and Housing Decisions
CHAPTER 5
L E A R N I N G G O A L S
LG1
Implement a plan to research and select a new or used automobile. Decide whether to buy or lease a car.
p. 132
LG2
p. 140
LG3
Identify housing alternatives, assess the rental option, and perform a rent-or-buy analysis. Evaluate the benefits and costs of home ownership and estimate how much you can afford for a home. Describe the home-buying process.
p. 144
LG4
p. 148
LG5
p. 157
LG6
Choose mortgage financing that meets your needs.
p. 161
LG1
BUYING AN AUTOMOBILE
Buying an automobile is probably the first major expenditure many of us make. The car purchase is second only to housing in the amount of money the typical consumer spends. Because you’ll buy a car many times during your life—most people buy one every 2 to 5 years—a systematic approach to selecting and financing a vehicle can mean significant savings. Before making any major purchase, whether it’s a car, house, or large appliance, consider some basic guidelines to wise purchasing decisions. • • • •
Research your purchase thoroughly, considering not only the market but also your personal needs. Select the best item for your needs. Buy the item after negotiating the best price and arranging financing on favorable terms. Be sure you understand all the terms of the sale before signing any contracts. Maintain your purchase and make necessary repairs promptly.
Exhibit 5.1 summarizes the steps in the car-buying process.
Choosing a Car
Sport utility vehicle (SUV) or pickup truck? Sedan, convertible, or coupe? Hybrid, diesel, or gas? Car buyers today have more choices than ever before, so more than one category of
5 : 132
Making Automobile and Housing Decisions
22865_05_c05_p132-172.qxd
10/2/06
1:55 PM
Page 133
EXHIBIT 5.1
10 Steps to Buying a Car
These 10 steps summarize the car-buying
10/2/06
1:55 PM
Page 132
Making Automobile and Housing Decisions
CHAPTER 5
L E A R N I N G G O A L S
LG1
Implement a plan to research and select a new or used automobile. Decide whether to buy or lease a car.
p. 132
LG2
p. 140
LG3
Identify housing alternatives, assess the rental option, and perform a rent-or-buy analysis. Evaluate the benefits and costs of home ownership and estimate how much you can afford for a home. Describe the home-buying process.
p. 144
LG4
p. 148
LG5
p. 157
LG6
Choose mortgage financing that meets your needs.
p. 161
LG1
BUYING AN AUTOMOBILE
Buying an automobile is probably the first major expenditure many of us make. The car purchase is second only to housing in the amount of money the typical consumer spends. Because you’ll buy a car many times during your life—most people buy one every 2 to 5 years—a systematic approach to selecting and financing a vehicle can mean significant savings. Before making any major purchase, whether it’s a car, house, or large appliance, consider some basic guidelines to wise purchasing decisions. • • • •
Research your purchase thoroughly, considering not only the market but also your personal needs. Select the best item for your needs. Buy the item after negotiating the best price and arranging financing on favorable terms. Be sure you understand all the terms of the sale before signing any contracts. Maintain your purchase and make necessary repairs promptly.
Exhibit 5.1 summarizes the steps in the car-buying process.
Choosing a Car
Sport utility vehicle (SUV) or pickup truck? Sedan, convertible, or coupe? Hybrid, diesel, or gas? Car buyers today have more choices than ever before, so more than one category of
5 : 132
Making Automobile and Housing Decisions
22865_05_c05_p132-172.qxd
10/2/06
1:55 PM
Page 133
EXHIBIT 5.1
10 Steps to Buying a Car
These 10 steps summarize the car-buying