Cars and Loans
www.practicalmoneyskills.com cars and loans
teacher’s guide 9-i
Being prepared is the best way to keep car-buying choices and decisions on the
right track. Students need to examine all aspects of the car-buying process
including: understanding the differences between buying and leasing; evaluating
used cars; financing; applying for loans; and finding the best auto insurance.
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cars and loans websites
“Should I buy a new car or a used car?”
“Where is the best place to finance my automobile purchase?”
“Is it better to take the rebate or the low-rate financing plan?”
These are typical questions asked by people buying vehicles. In this lesson, students are asked to
identify costs associated with owning and operating a motor vehicle. Since these costs are commonly
underestimated, guidelines are provided on how much to spend when buying vehicles.
The material provided in this lesson will address the many factors and decisions involved in
purchasing and financing a vehicle. In addition to comparing used and new cars, we also cover
warranties, service contracts, and financing the purchase. Other issues related to using credit for
buying a car include the information required by the Truth-in-Lending law, use of a co-signer,
Finally, various aspects of auto insurance are discussed. Students will learn about types of coverages,
factors affecting insurance costs, and comparing insurance companies.
Investigate the legal and financial responsibilities of buying, maintaining, insuring, and
operating a car, and translate those responsibilities into a monthly budget.
List some of the costs of owning and operating a car
■ Given a budget, decide how much you can afford to pay for a car
List some of the things you should research and some decisions you should make before
you begin to shop for a car
Understand the di