Lecture Personal finance - Chapter 5: Making automobile and housing decisions

GITMAN/ JOEHNK/ BILLINGSLEY N4 5 Making Automobile and Housing Decisions Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LEARNING OUTCOMES 1 Designaplantoresearchandselectaneworused automobile 2 Decidewhethertobuyorleaseacar 3 Identifyhousingalternatives,assesstherental option,andperformarent-or-buyanalysis 4 Evaluatethebenefitsandcostsorhomeownership andestimatehowmuchyoucanaffordtopayfora home 5 Describethehome-buyingprocess 6 Choosemortgagefinancingthatmeetsyourneeds Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH5 2 Guidelines for Purchasing Decisions • Research purchase thoroughly considering the market and the personal needs • Base the selection on the needs • Negotiate the best price and arrange financing on favorable terms • Understand all the terms of the sale before signing the contract • Maintain the purchase and make necessary changes promptly Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH5 3 Factors That Affect Affordability • Amount of down payment • Size of the monthly loan payment • Operating costs • Type of vehicle • Gas, diesel, or hybrid • New or used • Size, body style, and features • Other considerations • Trading in/selling, fuel economy, safety measures Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH5 4 Purchase Transactions • Negotiating price • Sticker price - Manufacturer’s suggested retail price • Key to negotiating a good price is knowing the dealer’s cost for the car • Closing the deal • Sales contract: Agreement to purchase an automobile that states the offering price and all conditions of offer • When signed by the buyer and seller, the contract legally binds them to its terms Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH5 5 ... - tailieumienphi.vn