MEL3E
Mathematics for Work and Everyday Life
Unit 4: Finding a Vehicle
Activity 7: New, Used or Lease
Have you ever rehearsed your answers for a job interview? Practiced asking someone out in a mirror? Run through a speech that you needed to give? The act of practicing an interaction gives us more confidence and helps us to remember all the things we need to say or do.
The process of buying or leasing a vehicle can be overwhelming: you want to make sure you ask all the right questions and get the information you need. Practicing the steps involved in buying a vehicle can be a helpful exercise. In this activity you will create a story that describes the steps you'd take when getting a vehicle.
A series of comic strips describing the steps involved in buying a car is one example of the kind of product you can create in this activity.
Below are three slideshows outlining the steps for buying a new vehicle, a used vehicle or leasing a vehicle. In the previous activity, you decided on a vehicle and an ownership option (new, used or lease). Read the slideshow for the ownership option you chose in the previous activity. Use the information in the slideshow to fill out the first two columns of this graphic organizer.
Buying a New Vehicle
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Step 1: Research Vehicles and Pick the Features You WantYou can visit consumer ratings sites, interview owners of vehicles you're considering and review the features of a vehicle on the manufacturer's sites. Use this time to consider the features that are important to you (eg. cargo space, safety, fuel efficiency, reliability, depreciation, etc...) Photo Credit: The Rookie Reporter via Flickr.com |
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Step 2: Get Pre-Approved for a Car LoanYou can apply for a car loan and get approved before purchasing your vehicle. This allows you to compare lender interest rates, including any rate you may get through the dealership. Pre-approval also helps you budget for your purchase because you know how much you can spend. |
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Step 3: Plan your Trade-In StrategyResearch the trade-in value of your current vehicle (if you have one). Photo Credit: Naoko Takano via Flickr.com |
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Step 4: Locate and Test-Drive the CarCall a dealer and make sure that the car you want is in stock. Make an appointment to take the vehicle for a test drive. TIP - Mornings during the week are not as busy at dealerships. Drive the car on a variety of roads and test how the car feels. Photo Credit: CAFNR via Flickr.com |
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Step 5: Get a Sale Price and Ask About Extended WarrantiesCall or email the sales departments of several dealerships that have the vehicle you want. Ask for the 'out-the-door' price and the accessories that that includes. You can also ask for a list of other products that the dealership will try to sell you. Photo Credit: Lister Group via Flickr |
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Step 6: Check for Dealer FinancingThe financing department of a dealership may offer you a better interest rate to get you to finance your purchase through them. You can apply for financing through the dealership and compare it to your pre-approved interest rate from the bank. |
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Step 7: Close the DealOnce you've agreed on the price and the financing office, you will sign the contract and purchase the additional options you agreed to buy (warranties, undercoating, paint protection, etc...). |
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Step 8: Take DeliveryGive your new vehicle a final walk around, checking for scratches, dents or imperfections. |
Material adapted from Edmunds.com
Buying a Used Vehicle
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Step 1: How Much Car Can You Afford?Decide how much you can afford to pay for your vehicle. Photo Credit: frugg via Flikr.com |
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Step 2: Build a Target List of Used CarsMake a list of vehicles that fall within your budget. Consider a variety of makes and models. Photo Credit: e'lemint via Flickr.com |
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Step 3: Check PricesCheck for sales prices for the vehicles you're considering. You can check dedicated auto trader sites, vehicle dealerships, newspapers and buy-and-sell sites. Photo Credit: The Rookie Reporter via Flickr.com |
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Step 4: Locate Used Cars for Sale in Your AreaMake a list of used vehicles that match your criteria. Photo Credit: John Lloyd via Flickr.com |
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Step 5: Check the Vehicle History ReportContact the seller and get a copy of the Used Vehicle Information Package. All sellers are required to provide this to you. Check the vehicle identification number (VIN) for any liens. Photo Credit: CAFNR via Flickr.com |
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Step 6: Contact the SellerIf the car belongs to a private seller, make sure the seller isn't a curbsider. Indicators that the seller may be a curbsider:
Photo Credit: Andrew Czerwinski via Flickr.com |
Curbsiders are illegal, unlicensed vehicle dealers that pose as private sellers in order to sell stolen, damaged or odometer-tampered vehicles.
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Step 7: Test-Drive the CarWhen test driving the car,
Photo Credit: Gabriella Szekely via Flickr.com |
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Step 8: Have the Car InspectedHave the vehicle inspected by a mechanic before you buy it. A pre-purchase inspection costs around $100.00 and no seller should object to you having this done. Even if you're buying from a dealership, it's a good idea to have an independent mechanic look over the vehicle. Photo Credit: Colin Marshall/Toronto Star |
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Step 9: Negotiate a Good DealDecide how much you're willing to pay for the vehicle. Have a price in mind but start with an offer that is lower (but still reasonable). Photo Credit: Chris-Håvard Berge via Flickr.com |
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Step 10: Get the Paperwork DoneMake sure the seller gives you the Used Vehicle Information Package. Get the vehicle permit with the completed Application for Transfer. Pay retail sales tax (even with a private sale) Get the bill of sale from the seller and make sure the seller fills out their name, date and purchase price. Get a safety standards certificate from a licensed mechanic Photo Credit: Kaptain Kobold via Flickr.com |
Material adapted from Edmunds.com
and the Ontario Ministry of Transportation.
Leasing a Vehicle
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Step 1: Get Acquainted With LeasingMake sure you are familiar with the terms and conditions related to vehicle leasing. Be sure you have considered the other options (buying a new car, buying a used car) and that you are sure that leasing is the right option for you. |
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Step 2: Design Your Lease Deal: Years, Kilometers and InsuranceDecide on a lease term. Leasing for longer than three years means that your vehicle won't be covered by manufacturer's warranties in the later years. Lease agreements have a kilometer limit. If you drive more than that limit before the end of the lease you will have to pay extra fees. Be sure to select a kilometer limit that is reasonable for you. Lease agreements require you to have a high level of coverage for the vehicle. Get a quote from your insurance company so that you know how much you will need to pay. |
The residual value is the amount you can buy the car for at the end of a lease.
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Step 3: Estimate Your Monthly Lease PaymentUse an online calculator to estimate your monthly lease payments. To use these calculators, you will need the residual value of the vehicles you're considering. You can call dealerships and get the residual value of leased vehicles. |
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Step 4: Shop Around for the Best Lease DealsWhen looking at advertised lease deals, don't just compare the monthly payments. Lease agreements will also have a 'bank fee' or a 'drive off fee' which is an initial payment that you make to reduce your monthly lease payments (like a downpayment on a new car). Also, longer lease agreements will have lower monthly payments. You should consider both these factors when comparing lease agreements. Photo Credit: harry_nl via Flickr.com |
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Step 5: Take the Vehicle for a Test DriveJust like buying a new or used car, you should take a leased vehicle for a test drive. Be sure that it is comfortable for you and drive the car on a variety of roads and test how the car feels. Photo Credit: Gabriella Szekely via Flickr.com |
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Step 6: Negotiate Your Best Lease PaymentMost aspects of a lease agreement are negotiable. when negotiating the best deal for yourself, consider:
Photo Credit: Chris-Håvard Berge via Flickr.com |
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Step 7: Understand 'Wear and Tear' CostsAt the end of the lease, you will be required to pay for repairs that go beyond normal wear and tear on the vehicle. Before leasing, get a clear definition from the dealer of 'wear and tear'. Make sure you have a clear understanding of how these charges will be decided. Photo Credit: Frank Swift via Flickr.com |
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Step 8: Review and Sign the PaperworkSign the paperwork for you vehicle. At this step, you may be offered other products such as fabric protection or other extras. Be sure to carefully consider these options before buying them as they can significantly increase the cost of your lease. |
Material adapted from Edmunds.com
Steps to Buying or Leasing a Vehicle
The slideshows above provide you with a brief description of the steps involved in buying or leasing a vehicle. You should do some research on your own, until you are satisfied that you understand the process.
You can prepare yourself for the experience of buying or leasing a vehicle by rehearsing the questions you would ask at each stage of the process. Fill in the final two columns of your graphic organizer with the questions you would ask and the things that you would do at each stage.
Introduction
Learning Goals and Success Criteria