Or partner for the experience of getting information

or partner, for the experience of getting information and practicing your negotiation skills (but
without making any commitments, unless you really are in the market for a car at this time).
2. How will you finance a car? Play with the Car Loan Calculator
at . First identify a sample of new or
used cars you would like to own, and for each choice calculate what your down payment, monthly
loan payments, and term of payment would be. How much would you need to buy a car and
where would that money come from? How much could you afford to pay each month and for how
long? How could you modify your budget to accommodate car payments?
3. For a car you would like to drive, calculate and compare what it would cost you to buy it and to
lease it. Use the Lease versus Buy Calculator at . What
would be the advantages of owning the car? What would be the advantages of leasing it? For your
lifestyle, needs, and uses of a vehicle, should you buy or lease?
4. View a 2009 Money Talks video on “Buying Cars in a Credit Crunch”
at -
4e25-b446- 30e313aa3796%26tab=Money %20Talks%20News . What sources of financing does
the video identify for times when national banks and finance companies are not forthcoming with
car loans because of downturns in the economy?

Saylor URL: Saylor.org
206
5. Check the lemon laws in your state at Lemon Law America’s Web
site: . Click on your state on the map. What conditions do
your state lemon laws cover? Some states do not cover used or leased cars under lemon laws.
Under federal laws, if you buy a used car “as is,” do you still retain rights under the lemon laws?
Under federal lemon laws, in what situations, when the seller does not divulge the information,
may you be able to get your money back on a car?
[1] Advertising Age, “Global Marketers: Top 100,” December 8, 2007,
(accessed April 1, 2009).
[2] National Automobile Dealers Association, (accessed
November 23, 2009).

Saylor URL: Saylor.org
207
Chapter 9 Buying a Home
Introduction
Be it ever so humble, the “biggest” purchase you ever make may be your home. Unlike
most other consumer purchases, a home is expected to be more than a living space; it is
also an asset that stores and increases value. The house has a dual financial role as both
a nest and a nest egg.
There are substantial annual operating expenses for repairs and maintenance,
insurance, and taxes. Maintenance preserves a home’s value, insurance protects that
value, and taxes for community services both enhance and secure its value.