Posts Tagged With: car buying

VIN Check When Buying A Used Car

Every motor vehicle has a unique Vehicle Identification Number (VIN), which can be used to check the registration, title, and any insurance claims. The numeric characters in the VIN indicate: the country of origin; manufacturer and division; vehicle description, safety and type of engine; the manufacturer’s security code; vehicle’s model year; assembly plant; and vehicle serial number.

Several no-cost VIN-check services are available to identify potential vehicle problems when buying a used car. This service is especially important when purchasing a vehicle online through Craigslist or eBay. A VIN-check service may also be used to obtain information on your current vehicle.

The National Insurance Crime Bureau (http://www.nicb.org/vincheck) has a basic VIN check search tool that will tell you if a vehicle has been reported as lost or stolen, salvaged, or declared a total loss after an accident. 

VehicleHistory.com offers a more complete VIN check, such as fuel economy, ownership costs, and a price analysis. Also included are the selling history, recalls, manufacturer warranties, and price estimates for the best time to buy a certain make and model.

iSeeCars.com/VIN consider 200 data points to create a car history report with a price analysis, price history, projected depreciation, and the best times to buy and sell.

As always, when buying a used car have an ASE certified mechanic of your choice inspect the vehicle. Remember, nearly every used car is sold “as is.”  Also be cautious of vehicles with flood damage that were rebuilt and had their titles “washed” after a hurricane or other major storm. These cars often encounter failed electrical systems.

For additional information on VIN checks for used cars, go to:

Teaching Suggestions

  • Have students talk to others to learn about actions to take when buying a used car.
  • Have students create a visual proposal (poster or slide presentation) with mistakes a person should avoid when buying a used car.

Discussion Questions 

  1. What features of VIN-check services might help people improve the car-buying process?
  2. Describe situations in which a VIN check may be appropriate.  
Categories: Chapter 6, Wise Shopping | Tags: | Leave a comment

ELECTRIC CARS

As technology improves, electric vehicles, also referred to as EVs, are increasing in popularity. The benefits of EV are the result of:

  • being environmentally friendly with no emissions
  • nearly silent engine sound
  • potential tax credits have been available in recent years
  • lower operating costs and maintenance expenses
  • smartphone apps to program charging times and to heat or cool the passenger cabin in advance of driving

Common concerns associated with EVs include:

  • the higher initial cost
  • short driving ranges for some models and in cold weather and on steep inclines
  • slow charging time, which are improved with new technology
  • charging stations may not always be available
  • loss of cargo space for the battery pack
  • lower towing capacities than with a conventional vehicle

The two main EV types are battery electric vehicles (BEVs) only running on electricity, and plug-in hybrid electric vehicles (PHEVs) that use electricity for a limited distance before switching to a gas-electric hybrid mode. Some models have an onboard generator to create electricity for greater driving distances.

For additional information on electric cars, go to:

Link #1

Link #2

Link #3

Teaching Suggestions

  • Have students conduct online research to determine current models, prices, and operating costs of electric cars.
  • Have students conduct an interview with someone who owns an electric car or hybrid to obtain information about the person’s experiences.

Discussion Questions 

  1. What factors should a person consider when buying an electric car?
  2. Describe future developments that might make electric cars more attractive to car buyers.
Categories: Chapter 6, Wise Shopping | Tags: | Leave a comment

Why Buy When You Can Rent?

While car ownership has been a cultural milestone in our society, this tradition is diminishing with a trend toward renting or borrowing rather than owning. This situation is partially related to fewer teenagers opting to obtain a driver’s license. Also, fewer young people are buying homes, giving preference to the flexibility of renting.

The owning of “stuff” is shifting toward “decluttering” and choosing instead to rent items as needed. A strong belief that overconsumption is putting our planet at risk is driving the rise of the sharing economy. In addition, there is a growing trust to value exchanging items with “real people” rather than buying from major companies.

In addition to Zipcar, which rents vehicles by the hour, other rental business models include:

  • Ann Taylor’s Infinite Style service that allows a person, for a $95 monthly fee, to rent up to three garments at a time.
  • SnapGoods rents cameras, power tools and home appliances, such as blenders.
  • Frankfurt airport has a service that allows travelers to store winter coats when flying to warmer climates. Other businesses are considering a service to rent cold weather clothing to travelers arriving from tropical areas.
  • Since about one-third of new vehicles are leased, Cadillac created the “Book By Cadillac” program allowing a person to exchange up to 18 vehicles a year.

The many empty stores in malls create opportunities for “swap meets” and “rental fairs” for various products, using these spaces to also build connections in the local community.

For additional information on renting instead of buying, click here.

Teaching Suggestions

  • Have students locate examples of sharing economy businesses and rental companies in your community and online.
  • Have students talk to others to obtain ideas for new types of rental businesses.

Discussion Questions 

  1. What do you believe are the benefits and drawbacks of renting instead of owning?
  2. Describe actions that might be taken to determine needs and ideas for rental businesses in a community.
Categories: Chapter 6, Chapter 7, Debt, Economy, Home Buying, Purchasing Strategies, Wise Shopping | Tags: , , , , | Leave a comment

Car Subscription Services

The opportunity to change cars like you change clothes is now possible.  For a monthly fee, car subscription services are an alternative to motor vehicle buying and leasing.

With an upfront fee is usually involved, the monthly fee covers the car payment, insurance, maintenance, and roadside assistance.  Subscribers can manage their plan online with the vehicle delivered to your home.

Car manufacturers that offer this service are Cadillac, Ford, Volvo and Porsche. Other companies specializing in offering a variety of makes and models are Fair, Flexdrive, Clutch and Carma.

Unlike leasing for 24 or 36 months, car subscription can be for as short as a month. However, some programs require a two-year contract, and only allow a trade-in (exchange) after 12 months.

The greatest benefit is the “negotiation-free” way of obtaining a car. And, if you don’t like the car, you can get a different vehicle. Car subscribers are reminded it’s not your car.  Smoking is usually prohibited and pets should be kept in carriers.  Not all cars are brand new but most are low mileage and less than six years old.

For additional information on car subscriptions, click here.

Teaching Suggestions

  • Have students talk to two or three others to obtain their opinions on the benefits and concerns of car subscription services.
  • Have students compare cost of various car subscription services with buying or leasing a vehicle.

Discussion Questions 

  1. What do you believe are the benefits and drawbacks of using a car subscription service?
  2. Describe life situations that might be most attracted to using a car subscription service.
Categories: Chapter 6, Chapter 8, Wise Shopping | Tags: , | Leave a comment

Vending Machines for Cars?

Believe it or not, you can buy a car from a vending machine.  Carvana has created an eight-story high glass structure holding 30 cars. The online auto retailer opened its first vehicle vending machine in Nashville, Tennessee, and also has locations in Austin, Houston, and San Antonio, Texas. Payment, financing, and trade-ins are arranged online.  Free delivery is offered in the areas served.  However, buyers have the option of receiving an oversized Carvana coin to drop in a slot to automatically move the car to the delivery bay ready to drive.

For additional information on Carvana, click here.

Teaching Suggestions

  • Have students search for a website or app related to car buying services that was not available a few years ago.
  • Have students talk with others about their car buying experiences. Ask students to propose an app or website that would improve car buying activities.

Discussion Questions 

  1. What benefits are associated with this type of motor vehicle buying process?
  2. Describe common mistakes people might make when buying a motor vehicle?
Categories: Chapter 6, Purchasing Strategies | Tags: , | Leave a comment

Auto Dealer Financing

You want a car and need financing, but your credit isn’t so great.  Most dealerships have a Finance and Insurance (F&I) Department that will tell you about their financing options.  To get the process started, the F&I Department will ask you to complete a credit application, which includes your monthly income and information on current credit accounts, including debt you owe.

At least that is how it’s supposed to work.  But there have been reports that some dealers inflate your income information for the financing without your knowledge.  That can cause you serious financial harm.  You could be saddled with car financing that you can’t afford to repay.  That means your car could be repossessed and your credit score could take a hit.

The Federal Trade Commission has a few tips to help you avoid unscrupulous finance deals:

  • Consider your options for financing. You might be able to arrange financing directly with a credit union or finance company before you pick a car.
  • Research the dealer before visiting the sales lot. Check the dealer’s reputation online by searching for the company’s name with words like “scam,” “rip-off,”or “complaint.”
  • If a dealer encourages you to overstate your income, take it as a sign that the dealer is not reputable, and leave the dealership.
  • Ask to see the credit application, completely filled out, before you sign it. Make sure your income and other personal information is correctly listed.

For more information, click here:

Discussion Questions

  1. Why is it important to consider other sources of financing before visiting an auto dealer?
  2. What might be the consequences if an auto dealer inflates your income?

Teaching Suggestions

  1. Have students visit an auto dealership to gain additional insight into this high-cost financing service.
  2. Have students make a short presentation with a summary of their findings.
Categories: Chapter 5, Chapter 6, Financial Services | Tags: , | Leave a comment

Blog at WordPress.com.