07 the Auto Decision 5May10

8/6/2019 07 the Auto Decision 5May10

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Objectives

A. Understand how a car fits into your

financial plan

B. Understand key issues of carownership

C. Understand how to buy or lease a new

vehicle and the lease versus buydecision

D. Understand how to buy a used car


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A. How does a Car Fit Into your

Financial Plan?

Most important reasons

Its a means of transportation

You have saved for it

It is within yourbudget

Less important reasons

Its fun to drive

Its fast

It makes a statement about your lifestyle (as

if you care)


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How can a Car Hurt your Goals?

Youborrow the money

Instead of earning interest, you pay it

Its not in yourbudget

It takes the place of more important goals

Its more than you had planned

It relegates more important goals to a lesser

position


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Questions

Do you know how a car fits into your personal

financial plans?


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B. Understand Key Issuesin Auto Decisions

There are a number of important topics to understand

before we discuss buying or leasing new or used

vehicles. These include:

1. Choosing a vehicle

Goals and Budget

Safety Reports

Automobile Reports

Insurance2. Before You Go Looking

New/Used Vehicle

Prices

Holdback

Warranties

Service Contracts

Lemon Laws

3. After You Have Found It Vehicle History

Checkedby a

Mechanic

Maintenance records


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1. Choosing a Vehicle:

Your Goals and Your Budget

Know your goals and yourbudget

Have you written down your goals?

Are you living on a budget?

If you are planning to finance the vehicle (not

recommended), are there sufficient funds to

cover the costs and still attain your other goals

Are you putting aside money each month to

purchase another vehicle in the future


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Choosing:

Vehicle Ratings and Safety

Pick a vehicle that is safe for your family

Where do you find information on vehicle safety

and ratings?

There are a number of good sites. A goodplace to start is the National Highway Traffic

Safety Administration site at www.nhtsa.gov,

safer cars at www.safercar.gov, and the

Insurance Institute for Highway Safety atwww.iihs.org

You get information on safety ratings,

crash tests and other important information

about specific vehicles


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Choosing:

Automobile Reports

Pick a vehicle with a strong safety and repair

record

Where do you find safety and repair information?

You can find good information at Consumer

Reports on new and used vehicles at

www.consumerreports.org.

There is a lot of great information at this source

on vehicles and ratings


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Choosing:

Insurance

Pick a vehicle that is inexpensive to insure and

drive Which vehicles are more expensive to insure?

The Insurance Services Office (ISO) rates eachvehicle on its loss history, with a numberbetween 3 and 27.

The higher the number, the more expensivethe coverage

Sports cars, high performance cars, and evenSUVs are more expensive to insure

Which vehicles are more expensive to drive?

Check the miles per gallon in the city and

highway


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2. Before You Go Looking:

New versus Used Decision

Your choice of new versus used vehicles willdepend on three areas: goals, preferences, andavailablebudget for transportation expenses

New Vehicles

Advantages

New vehicle and all that goes with it

Lower maintenance costs

Car may last longer (it is not used)

Disadvantages

Higher initial vehicle costs

Higher insurance costs

May limit other goals if spend too much


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Used Vehicles

Advantages

Lower initial vehicle costs

Lower insurance costs

May provide additional resources for other

goals due to lower costs

Disadvantages

Higher maintenance costs

Will likely have to replace it sooner than

new car

Before You Go:

New versus Used Decision (continued)


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Know what the dealer paid for the vehicle

Where can you get reliable estimates for new

vehicle prices?

There are a number of automobile websiteswhere you can get great estimates of what the

dealer paid from the manufacturer, i.e.,

www.edmunds.com, www.autosite.com, or

www.kbb.com. Put in the manufacturer, model, and options and

you can get the invoice price

Negotiations shouldbegin at the invoice price

Before You Go:

New Vehicle Prices


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Before you Go:

Used Vehicle Prices

Know the price range for the used vehicle you

are looking at (good to excellent condition)

Where do you find information on used car prices?

You can generally find the same information on

used cars,just as you do new cars. Key sources

include www.edmunds.com,

www.autosite.com, www.kbb.com,

www.nada.com or www.vehix.com. Know which guides are used in your area,

i.e. Nada versus Kelly Blue Book


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Before you Go:

Holdback

Know the dealer Holdback

What is a holdback?

The holdback is a rebate to the dealer to

compensate the dealer for holding the vehicle onhis lot. Information on holdback is found at

many different sources, including:

http://www.edmunds.com/advice/incentives/hold

back/

Why is this important?

It is important for you to realize that even when

the dealer sells a vehicle at this cost, he is still

making money


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Before you Go:Warranties

Know the warranty and period

What are warranties?

Warranties are assurances that goods are as

promised and that any problems will be resolved What are full warranties?

Full warranties are contracts that require:

1. Product willbe fixed at no cost to the buyer

within a specified time 2. Owner will not have to undertake

unreasonable tasks to return the product

3. Defective product will be replaced or

money returned if the product cannotbe fixed


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Before you Go:

Service Contracts

Know available service contracts and providers

What are service contracts?

Agreementsbetween the contract seller (dealer,

manufacturer, etc.) to provide free (or with adeductible) repair services to covered

components specified length of time or mileage

after the original warranties are over.

What should you be concerned about? Contract terms: Items covered (power-train),

length of coverage (i.e., 5 years), and mileage

Contract seller: Who standsbehind it. Generally

service contracts from the manufacturer are

better as you can get service nation-wide


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Before you Go:

Lemon Laws (Consumer Protection)

Know your rights as a consumer

What are lemon laws?

Laws established to protect the consumer in case

the vehicle purchased is a lemon

How do you know if you have a lemon?

You are still having problems, and you have

made:

4 attempts to fix the problem, and

The car was out of service at least 30 days

during the first 12 months or 12,000 miles

Take the carback and either get another car or

your moneyback


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3. After You Have Found It:

Vehicle History

Get a vehicle history report

What is a vehicle history report?

It is a record of each and every time the vehicle

was registered with a different owner in therecords of the state

How can you get a copy of a vehicle history?

You can go to www.carfax.com. By putting in the

Vehicle Identification Number (VIN), you can geta report as to the ownership and location of a

vehicles history.


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After You Have Found It:

Service Records

Review the service records of the vehicle

How do you check service records?

Sellers should have a copy of all service

performed on the vehicle Consumers should keep a record of all

service performed

Dealers, oil change places, etc., often have

records of when service was performed Vehicles which have good service records were

likelybetter taken care of than those without, and

as such, command a higher premium


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Questions

Any questions on keys issues in buying or

leasing new and used vehicles?


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C. Understand how to Buy or Lease a

Vehicle and the Lease/Buy Decision

General Guidelines (the process):

1. Know the terminology

2. Narrow your choices and pick your vehicle

3. Determine your total price and negotiate for it

4. Finance the purchase if you must (lease orbuy)

5. Enjoy your purchase and keep it well

maintained


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1. Know the Terminology

MSRP

Manufacturers hoped for price

Capitalized cost

Your agreed to or negotiated cost

Capitalized cost reduction

Any reductions in cap. cost, such as rebates,

down payment, dealer incentives, trade-in, etc.

Net capitalized cost (also called adjusted capitalized cost)

Capitalized cost less capitalized cost reduction Residual value

Expected value of the vehicle at term end

Lease term

The number of months the vehicle is leased


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Leasing Terminology (continued)

There are three parts to lease costs

1. Usage (or depreciation)

Usage is the amount of the value of the vehicle

that is used. It is calculatedby taking the netcapitalize cost less the vehicles residual value

2. Monthly Interest costs (or finance costs)

(Net capitalized cost + residual) * money factor

It is the average amount borrowed times themonthly interest rate: (Net cap. cost + residual) /

2 times average interest rates: APR / 12

3. Taxes

Taxes are (usage + interest) * tax rate


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Leasing Terminology (continued)

What is the Money Factor?

It is a way of expressing interest rates. It is the

APR (in decimal form) divided by 24.

It is a way of calculating your monthlyinterest costs, which is the average amount

borrowed * average interest rate

Average amountborrowed: (Net

capitalized cost + residual) / 2 Average interest rate: APR / 12

Multiplied together: (Net cap. cost +

residual) * APR / 24 (which is your money

factor) gives your monthly interest charge


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2. Narrow Your Choices and Pick your Vehicle

Comparison shop: price,

product features, and

quality.

Be informed: checklibrary and Web

sources.

Look at the alternatives

Fit your car into your

budgetdont make your

budget fit your car!

Calculate your payments

if you must finance it.


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Narrow and Pick(continued)

Do your comparison shopping (via the internet

or other publications)

Compare price

Compare features

Compare quality

Determine what is available in your price

range. Test-drive the exact vehicle you are

considering.


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3. Determine your Total Price and

Negotiate for It (Capitalized Cost)

Before youbegin negotiations

Determine how much you can spend

Identify the car(s) you are interested in

Do your homework and find the dealerscost plus any:

Rebates

Holdback from manufacturer

Total markup

MSRP & dealer invoice

www.autosite.com, www.edmund.com


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Start negotiations at dealers invoice If they wont share it, go someplace that will!

Both the Chevrolet and Ford dealers in the area

were willing to share their invoices Often invoice plus $100-500 will work

Dealer inventory often impacts differencebetween invoice and MSRP (demand & supply)

Date often affects dealers willingness to deal

End of month and end of year areparticularly good times to buy

Tell them that you will not force them to take yourmoney!

Negotiating (continued)


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4. Finance the Purchase (if you must)

Term Interest Rate Fees

Bank 1 to 5 years 9.15 to 13% $50 origination fee

$50 prepayment fee

Credit Union 97 or newer 8.25% None60 months auto deduct

94 to 97 8.25% None

36 months

93 9.70% None

36 months

older than 93 10.50% None

36 months


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5. Maintain YourPurchase

Read the owners manual and perform

regular maintenance

Particularly do oil changes every 3,000

miles

Dont ignore warning signals.

You do at your peril!

Choose a good garage; check training andexperience


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Questions

Any questions on general guidelines on

buying a new vehicle?


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Lease versus Buy: Buying

The lease versus buy decision is determined on three

areas: goals, preferences, and availablebudget for

transportation expenses.

Advantages You are protected in case ofjob loss or change

You can drive unlimited miles and modify your car

No monthly payments

Vehicle can be used for any purpose Disadvantages

Higher up front costs

Expensive if you get a new car every few years


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Lease versus Buy: Leasing

Advantages

Payments are usually lower, as you only pay for

portion of car you use

Good if you want new car every 2 to 3 years You pay sales tax only on monthly payment

Disadvantages

No flexibility in moving, high fees and fixed

mileage At the end of the contract you dont own the car

Dealers sell you a new car every few years and

make more money off of you

Profits can be hidden due to complexities of leasing


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The Leasing Process: 1. Negotiate

the Price (first)!


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Negotiate the Price First (continued)

Never walk into a dealership and announce

you want to lease a car, and dont talk

payments either.

Any competent dealer can find a way tomake a car fit yourbudget while

maximizing his profits

Knowb

eforehand which car you want

and know how much you can afford


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2. Select the Lease Term (the Schedule)

Depreciation Schedule of a Typical Vehicle

12 months 24 months 36 months 48 months 60 months 72 months

25% 75%

38% 62%

43% 57%

50% 50%

62% 38%

77% 23%

Depreciation%

ValueRemaining/Residual

Value


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3. Calculate Residual Value

Auto Residual Guides

Kelly Blue Book (kbb.com)

Edmund (edmund.com)

Important parameters

Year, make & model of auto

Term of lease

Apply residual ratio to MSRP to

calculate residual value


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$30,000 Price, 7.44% rate, .56 Residual ratio,

$30,000 MSRP

X .56 Residual ratio (3 year lease)

$16,800 Residual valueThen

$30,000 Agreed upon price (may be the MSRP)

Residual value

$13,200 Usage /Depreciation Fee (that portion youof the vehicle you are using)

dividedby the months in the lease (36)

$366.67 for the monthly depreciation payment

Residual Value Example


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4. Determine your Costs

Costs of Leasing

Up Front and End of Lease fees

Acquisition , Registration , License, and

Document Fees (paid upfront), terminationMonthly

Usage/Depreciation (13,200 / 36months)=$366.67

Finance (($30,000+16,800) * MF or (.0744 /24) = $144.30 per month

Sales Tax (366.67+ 144.30)=510.97 *.0625= $31.94

Total Monthly Cost of Lease = 366.67 + 144.30 +

31.94 = $542.91


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5. Maintain Your Purchase

Read the owners manual and perform regular

maintenance

Particularly do oil changes every 3,000 miles

Dont ignore warning signals. You do at your peril!

Choose a good garage; check training and experience.

These are the same as forbuying except:

If your lease extendsbeyond the manufactureswarranty (generally 36 months), get an extended

warranty to protect you!


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Questions

Any questions on the lease versusbuy

decision?


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D. Buying A Used Automobile

Key questions to ask on buying a used car:

1. Can I afford this car?

Will it fit into my monthly budget? Is it a need?

2. Does it meet my current driving needs? What type of driving you do? Shop for a car

that meets your driving patterns

3. Will it meet my future needs?

Consider how you will feel about this car a yearor two from now. Will your family be growing?

4. Does it meet my preferences?

Gas mileage, sedan/SUV/truck, 2-door/4-door,

safety?


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Getting the Best Deal

The cost of a vehicle is based on its reliability,

performance and popularity

Of course you want a car that is reliable and

performs well. But do you want the same used

car everyone else wants?

If so, you will pay a premium for it. In some

cases, the only difference is the nameplate

Check reliability at

www.consumerreports.com

Check your needs versus wants!


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If You Must Finance the Car

I do not recommend financing a vehicle!

This is not a preferred methoddontborrow

But if you must:

Get your financing approvedbeforehand from acredit union or other financial institution

Do not use in-house financing unless you get

special deals (0% financing) or unless it is very

competitive

Make sure you read the fine print

completely!


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Getting Used Car Financing

If you must borrow, there are several different lendersavailable for funding a dealership used car loan

Banks and credit unions

This is generally the cheapest form ofborrowing

(after parents)

Banks will typically only finance a car that is

less than five years old

Auto Dealerships.

Dealerships will consistently have the worst

interest rates because they are selling you their

services


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Financing a Used Car(continued)

When looking for a lender, it is also important to

consider the maximum length of the loan

The good news is that most banks have 60-

month programs for late used models

However, the older the vehicle, the less likely it

will sustain for a full 60 months

In general, the older the vehicle, the shorter

the loan length. An older vehicle is not good

collateral for a loan.


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Sources of Used Cars

The three most common places from which you canbuy used cars are the following:

1. Private parties

Generally the most reasonable prices,but no

warranty

2. New car dealerships

Some may be backedby warranties

3. Used car lots

Run by rental car agencies. Sometimes no hagglebuying, competitive

prices, and perhaps the factory warranty maystillbe in effect


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Locating Good Used Cars

Do your research -- leave no stone unturned

Ask friends, relatives (you will know more about

history of vehicle)

Watch for cars with For Sale signs Watch newspaper classifieds,bulletinboards, etc.

Generally, closer is better

Use Internet sites:

AutoTrader.com Classifieds2000.com

Usedcars.com


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1. Call Before You Go See a Car

Create and use a form when calling-- ask keyquestions. Verify the:

The price in the ad (ask again as they may have

lowered the price since the date published) Number of miles

Number of owners

How often oil was changed (ask for receipts)

What is the bluebook or recommended price It it doesnt fit your criteria or the seller seems uneasy

answering questions, skip the visit and keep looking!


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Ask and Verify Key Information

To verify previous owners

Use www.Carfax.com

$20 for a two month subscription

Check out every potential vehicle as toprevious owners and locations via its VIN.

To verify current value

Use Edmunds.com, KBB.com (Kelley Blue

Book), or superpages.com

Agree as to the quality of the vehicle, i.e.

excellent, good, etc. before you come to visit so

you can verify a fair price


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2. Go see The Car

Note your first impressions

Does the car appear to be well cared for?Examine for rust. Beware of newly painted cars,as this may be a cover-up for more serious

damage Are there considerable dents, mismatched paint

areas, or poorly fitting parts? Make sure there areno ripples in door panels, as this indicates

previous accidents

Check for body filler. Use a refrigerator magneton suspicious spots to test for auto-body filler

Look inside the car for wear and tear on the seatsand pedals. Make sure it is consistent with themileage on the odometer


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CheckOut the Car in Person

Check the underside and tires

Look underneath for evidence of fluid leaks such

as coolant (greenish), oil (black), transmission

fluid (pink), or gasoline (identifiedby smell) Take a look at the tires. A tread thats uneven to

one side is a sign of poor alignment orbalance

Tires must be same size. Insist on a spare, jack,

and lug wrench with the deal

Check CV joint boots on either end of front

axles. These are expensive to replace

With 4-wheel drive vehicles, make sure all 4 tires

are the same brand, size, and type


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CheckOut the Car(continued)

Check under the hood

Look for mismatched bolts or offset paint. This

may mean a front-end accident

Look at the underside of the hood. A sprayedblack film on the underside usually means oil

leaks

Examine the enginebelt for wear. Use judgment

as if it breaks, you will have to pay to repair it

Look for leaks and other things out of place


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Perform gauge and listening tests

Make sure no emergency gauge lights are onwhen the engine is running

Does the car start right away? Listen for unusualnoises

Wipe the inner surface of the tailpipe with a rag:white or gray dust is normal. Thick, greasy sootmeans the carburns a lot of oilthis can be

serious Most of you are not mechanics,but look forpotential problems anyway


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Check the oil, brake, and transmission fluid

Are levels ok?

Take out the transmission dip stick. Does the

fluid smell burned? Does it look like they just changed all the fluids?

It may indicate that there is a problem

Check the oil level. A low level may indicate

either a leak or an owner who didnt care much

or know much about the car


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Check the shock absorbers and lights

Bounce the car up and down at each corner. (when

you release it, you should not feel it bounceback

more than twice)

Test all lights: brake lights, headlights, reverse

lights, turn signals, etc.


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Check for play (the amount that a part can move

before it engages)

Check for play in the steering wheel, clutch, and

brakes

Holdbrake pedal down as far as possible for45

seconds. If they dont hold firm, there may be a

leak

Push the top of one rear tire toward the car. If it

moves too much, there may be bearing problems


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3. Go for a Test Ride

Take it for a drive personally

How does it feel? How does it fit?

Evaluate the acceleration from a stop. Does it

hesitate or accelerate as it should? Check engine noise, passing acceleration, hill-

climbing power, braking, cornering, suspension,

seat comfort

Check for rattles and squeaks, interior controls,

and the audio system. Play the radio, tape deck,

CD player, etc.


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4. Take the Car to a Qualified Mechanic

Get a more complete inspection

Choose a mechanic who regularly works on

these cars, generally from the dealer. Other

mechanics may be only guessing as to problems

Dealers may also have the car history on their

computers

Have mechanic do a compression check and

check for oil and fluid leaks

For automatic transmissions, take the car to a

transmission specialists to check out the

transmission


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5. Negotiate the Deal

Notes on negotiating for a used car

1. Let the sellers know you have the cash in

hand. Cash does wonders for an agreement

2. Know the fair value for the carbeforehand 3. Negotiate politely!

If the price is too high, have a persuasive

argument to support it

a. It needs some work b. The body or paint doesn'tjustify the

price

c. You have seen lower prices elsewhere in

the market


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Tips for Negotiating

1. Only enter into negotiations with a salesperson you

feel comfortable with and who can deal

2. Decide ahead of time how high you will go and

walk out when you reach this price

3. Leave if you get tired or hungry -- don'tbe hurried

into a decision

4. Don'tbe distractedby pitches for related items

5. Expect a closer to try to improve the dealbefore

you reach a final price


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Closing the Deal:

At a Dealership

The financing and insurance person will probably tryto sell you a number of additional items.

Most (if not all) of these you dont need!

Review the contract thoroughly:

Ask questions about anything that dramatically

increases the price. You will alsobe asked to

provide proof of insurance before you drive away

in your used car.

Finally, you should inspect the carbefore you take

possession of it

If any work is required or promisedby the dealer,

get it in writing in a "Due Bill."


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Closing the Deal:

Private Sale

Before money changes hands, make sure you will be

able to register the car in your name

No registration means no deal

Request the title (sometimes called the "pink slip")and have it signed over to you.

No title means no deal

One way to deal with the seller still owing money

on the car is to conclude the sale at the bank

where the title is held

Once all of the paperwork is complete

Relax andbegin enjoying your new purchase: a

good used car


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6. Finance the Used Car(not recommended)

Finalize the financing from yourbank or

credit union

Make sure you understand exactly what you are

getting into before you sign Once you sign, you have committed yourself


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Funding a Person-to-Person Car Loan

There is currently only a few ways to fund a person-to-person used car loan. One is with a company calledPeople First.

If you apply online, approval is in an hour. They

then FedEx you a blank check. Regardless of which lender is chosen, it is

important to know your credit score beforeattempting to get a loan.

If you know whether or not you have good credit,

a dealer will be unable to insist that you need ahigher interest rate because of your poor credit,and you will have greater freedom in choosing alender with a lower interest rate.


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7. Take Care of Your Car

Change the oil every 3-5,000 miles

Wash and clean it often

Get the recommended tune ups and care

Rotate the tires every 5,000 miles Drive it and take care of it like you want your car

to last 250,000 milesit may!


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Addendum

Note: even if you do all the above listed

things in buying a used car, there is still the

chance that you will have more expenses than

you had considered. That is one of the risks ofbuying a used car

However, the closer you adhere to the process

explained, the less likely you will have major problems

in the future


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Useful Auto Websites

Car Fax Carfax.com

Intellichoice IntelliChoice.com

Edmunds Edmunds.com

Kelly Blue Book kbb.com

Consumer Reports Consumerreports.org


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Questions

Any questions on the process ofbuying a used

car?


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Review ofObjectives

A. Do you understand how a car fits into

your financial plan?

B. Do you understand the process of how

to buy or lease a vehicle?

C. Do you know how to make the lease

versusbuy decision?

D. Do you know how to buy a used car?


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Case Study #1

Data

Maxine negotiated the price of a car with a dealer and now wantsto decide whether she should lease orbuy the car.

Manufacturers Suggested Price (MSRP) $25,000

Negotiated cost/Capitalized cost 22,000 Down Payment 2,000

Lease Term and residual 3 Years, 55%

Fees: Acquisition $500, Registration $150, License $35,Documentation $200, Termination $300

Rent charge and Loan rate (APR) 8.35%

Sales tax 6.25%

Calculations

Help her decidebased solely on costs. She will pay cash forthe down payment, taxes on down payment, and fees but willfinance the remainder (including other taxes). Assume the

value at term end is the residual value

MSRP 25 000 Negotiated/Capitalized Cost 22 000 Down Payment 2 000


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MSRP 25,000, Negotiated/Capitalized Cost 22,000, Down Payment 2,000,Lease Term and residual 3 Years and 55%, Fees: Acquisition $500,Registration $150, License $35, Documentation $200, Termination $300,Rent charge and Loan rate 8.35%, and Sales tax 6.25%.

MSRP 25 000 Negotiated/Capitalized Cost 22 000 Down Payment 2 000 Lease Term


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MSRP 25,000, Negotiated/Capitalized Cost 22,000, Down Payment 2,000, Lease Termand residual 3 Years and 55%, Fees: Acquisition $500, Registration $150, License $35,Documentation $200, Termination $300, Rent charge and Loan rate 8.35%, and Salestax 6.25%.

Solution: Cost of Leasing

Down Payment and fees $2,000

Taxes on Down Payment (2,000*.0625) 125

Fees (Acq + Reg + Lic + Doc+ Term) 1,185

Total Paid Outside the Lease $3,310

Total Lease Payments:

1. Usage: [20,000 13,750 (55% of MSRP)] $6,250

2. Interest: (Average outstanding * average rate)

[(Net Cap. Cost + Residual) * Money Factor]

(20,000 + 13,750) / 2 * .0835/12 * 36 months) 4,227

3. Taxes: (6,250 + 4,227)*.0625 655

Total lease payments of $11,132

Total Cost of Leasing (DPF+LP) $14,442

Monthly lease cost: 11,132 / 36 = $309.22

MSRP 25 000 Negotiated/Capitalized Cost 22 000 Down Payment 2 000


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MSRP 25,000, Negotiated/Capitalized Cost 22,000, Down Payment 2,000,Lease Term and residual 3 Years and 55%, Fees: Acquisition $500,Registration $150, License $35, Documentation $200, Termination $300,Rent charge and Loan rate 8.35%, and Sales tax 6.25%.


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Case Study #2

Data

Andrea is considering the costs of owning a vehicle

valued and sold for $30,000. Auto Loan Amount:

$30,000, Duration: 4 years, APR: 8.65%

Property taxes: 2% of the vehicle value per year

Sales Taxes: 3% of the sales price

Title and Tags: $40 per year

Maintenance and Usage Costs: $1,500 per year

Insurance: $2,000 per year

Calculations

Calculate the total first year cost of ownership.


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Case Study #2 Answer

$30,000 4 years APR8.65% will have payments of$741.58 x 12 =

$8,898.91 payments in year 1

$600 Property Tax

$900 Sales Tax

$40 Title/tags

$1,500 Maintenance/usage

$2,000 Insurance

$13,938.91 for the total cost for the first year

Date post:	07-Apr-2018
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07 the Auto Decision 5May10

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