个人理财05-精品.pptVIP

LOGO Chapter 5 Making Automobile and Housing Decisions Learning goals: LG1: Implement a Plan to research and select a new or used automobiles LG2: Decide whether to buy or lease a car LG3: Identify housing alternatives, assess the rental options, and perform a rent-or-buy analysis LG4: Evaluate the benefits and costs of home ownership and estimate how much you can afford for a home LG5: know the home-buying process LG6: Choose mortgage financing that meets your needs Buying an automobile research your purchase thoroughly, considering the market and your needs. Select the item best for you Negotiate the best price. Arrange favorable financing. Understand all terms of sale before you buy. Maintain and repair after you buy. Choosing a Car Factors to Consider: 1.Affordability :how much can you afford to spend? (1)Down payment: can’t use emergency fund (2)Monthly loan payment: 20% of your monthly net income Using financial calculator to find an auto loan amount 2. Operating costs: (1)Car payment (2)Insurance (3)License (4) fuel, oil, tires (5)Other operating and maintenance outlays (6) depreciation: the loss in the value of an asset such as an automobile that occurs over its period of ownership; the price initially paid- subsequent sale price 3. New or used? The pros and cons of buying a used car: 4. Size, body style, and features The larger the size, the more expensive to purchase and to operate 5.Reliability and warranties 6. Other consideration Trading in or selling your existing car Fuel economy Safety features Insurance costs The Purchase Transaction Negotiating price: dealer’s cost Made-to-order car Closing the deal: sign sales contract Trade in your loan: Leasing your car Why do you want to lease your car? Rising new car prices The nondeductibility of consumer loan interest Lower monthly payments Getting a more expensive car for the same monthly payment Minimizing the down payment to preserve cash The leasing process Closed-end lease: walk-away lease O