Driver's Ed- Consumer Responsibility

Texas Law, under Transportation Code 601.072, currently requires....

"minimum liability coverage of: --$30,000 per INJURED PERSON --up to a total of $60,000 for everyone injured in a crash --$25,000 for property damage" This basic coverage is called "30/60/25 COVERAGE" ==Because of car prices and the high cost of medical care, the minimum amounts might not be enough if you cause a crash. if your liability limits are TOO low to pay for all of the other driver's costs, the drive may SUE YOU to collect the difference; to PROTECT YOURSELF FINANCIALLY, consider BUYING MORE THAN THE BASIC LIMITS

One cost is.....

"the buying automobile insurance." --once you have graduated to having a driver's license and are no longer required to have adult supervision, you are NO LONGER covered by the SAME PROTECTION that you had when driving with an instruction permit (while driving with a instruction permit your parent's should check with their insurance agent about coverage)

Exterior Inspection:

"walk around the vehicle and perform the following checks" ---BODY-- .are seams where doors and fenders meet straight and even? .does a magnet cling to all steel body panels? (be sure to test fenders, the lower corners of doors, and rocker panels--the areas below doors. If a magnet does NOT cling, suspect body filler was used to repair rust or crash damage) .are all body panels the same color? .has the car been recently repainted? (look for signs of spray paint on moldings; also check the edges of the doors, hood, and trunk to be sure they are ALL the same COLOR; FRESH PAINT may cover RUST THAT WILL CONTINUE TO PROGRESS) ---TIRES---- .do all tires have the same amount of TREAD .are all the tires the same SIZE? (check tire size markings on tire sidewalls) .are all tires the same BRAND .is there a spare tire, jack, and lug wrench? if the vehicle has locking hubcaps, is there a KEY for REMOVING them? .is the spare tire inflated? (press hard against the side with your thumb; the tire should be firm) ---SUSPENSION--- .does the vehicle sit level? .bounce each corner of the vehicle; do all corners respond the same? (corners should only BOUNCE ONCE OR TWICE BEFORE STOPPING) .do you hear a CREAKING NOISE when bouncing the vehicle's corner? -----FRAME---- .examine INSIDE TRUNK, WHEEL WELLS, and UNDER HOOD; do you see areas that look they have been crumpled and straightened? .look underneath each side of the vehicle for a row of holes in the frame, just inside the vehicle's outer edge; do HOLES appear SCRATCHED or RECENTLY CLEANED? (If so, suspect the frame has been straightened after a crash)

Expenses of Vehicle Ownership:

(a)year; (b)type of vehicle; and (c)type of insurance coverages you buy, -- are ALL factors you must consider when examining expenses associated with vehicle ownership

PURCHASE PRICE * INTEREST RATE * LENGTH OF FINANCE== ACTUAL COST!!

**Remember before you sign a contract to purchase of finance the car, consider the terms of the financing, and evaluate whether you can AFFORD IT --once you have signed a contract, do NOT drive the vehicle off the lot UNLESS you have a signed copy of the contract that both YOU and the DEALER have signed and make sure that ALL contract information is COMPLETED!

Continuation of "Performance Questions"

-----Steering--- .does the vehicle pull to one side during normal operation? .is steering difficult at any speed? .turn SHARPLY in BOTH DIRECTIONS; do you hear clunking or other noises or feel rubbing or binding? .does the vehicle shake or vibrate while moving? (take the vehicle up to freeway speed for this test) .is the steering wheel centered when the vehicle is traveling straight ahead? ---GAS CAP AND FILLER NECK----- .is there a gasp cap? does it fit correctly? (if the cap LOCKS, is there a KEY?) .remove the gas cap and check inside the filler neck; is there a fuel-nozzle restrictor to prevent adding leaded fuel? (most states require them) --ENGINE COMPARTMENT--- .are there signs of oil or fluid leaks? .run the engine at full operating temperature; are there abnormal smells due to leaking fluids on hot engine parts? .are there unusual noises, such as clattering or metallic sounds or sharp hissing, in the engine compartment when the engine is running? (normal sound is smooth whirring of belts and fan) .does anything appear to be missing? (look for shiny or clean areas where pars may have been removed) --UNDER THE VEHICLE--- .are there fluid leaks on the underside of the engine and transmission, at axle ends, at brake line connections, or on the ground beneath the vehicle? GREEN FLUID is usually ANTIFREEZE, REDDISH FLUID is usually POWER STEERING and TRANSMISSION fluid; DARK BROWN or BLACK FLUID is usually OIL or BRAKE FLUID .are any parts loose, with the exception of exhaust parts slung from flexible rubber donuts? .does anything appear missing, such as bolts, clamps, brackets, or cables? .are exhaust system parts rusty? .are there marks from scrapes, indicating the car has bottomed out on rocks or pavement? .examine exhaust when the car is operating at normal temperature; do you see WHITE or BLUE SMOKE?

Performance Questions:

----ENGINE----- .does the engine start easily? .does the engine stall at any time? .does the engine idle smoothly? .does the idle speed seem too slow or fast? .does the engine hesitate or stumble on acceleration? .does the engine run smoothly during operation? .does the engine seem to lack power? .if the vehicle has cruise control, do all features work correctly? .do engine or other system warning lights appear? .if a diesel engine, does it continue running when shut off? ----TRANSMISSION AND CLUTCH .is automatic shifting smooth? .on a manual-shift vehicle, is take-off smooth, without grabbing or jerking? .on a manual-shift vehicle, release the clutch and accelerate hard in lower gears or when going uphill; does the clutch seem to slip? .on a manual-shift vehicle, try shifting to a lower gear when going slowly; does the transmission shift easily, without grinding? -----4 WHEEL DRIVE---- .engage 4 wheel drive ONLY on SOFT SURFACES UNLESS(!!!) the owner's manual specifically says the feature can be used on hard-surfaced roads; on a suitable surface, test-drive the vehicle in forward and reverse with 4-wheel drive engaged; does the vehicle shift smoothly in both directions? .turn light corners to the right and left; are there clunking sounds or other noises? .do the wheels bind or pull, whether turning or going straight? ----BRAKES---- .apply the brakes several times at DIFFERENT SPEEDS; also, try a SUDDEN STOP; does the vehicle pull to one side when brakes are applied? .do brakes stop the vehicle adequately? .if the vehicle has antilock brakes (ABS), trying stopping suddenly; do wheels lock? ( a PULSING BRAKE IS NORMAL!!!!) .does the parking brake hold firmly and release completely?

Other Costs you will need to consider are:

--Vehicle purchase and financing --Registration and inspection costs ---Insurance Costs ---Fuel, maintenance, and operating costs

When looking to buy a vehicle ask yourself?:

.Never or Used? .WHY do I need it? .What safety features are needed? .How much will it cost? .How economical is it? .What options do I need?

Shopping for a Used Car:

.New vehicles= EXPENSIVE for YOUNG drivers ---Buying a used car==an option MOST young drivers choose --Used vehicle availability==most dealerships and private owners --Buying a car from a private owner often costs less but is VERY RISKY. Unlike dealing with a used car dealer, who will have a (a)written warranty or (b) guarantee saying they (the seller) "will repair the vehicle for a stated period of time." a PRIVATE OWNER will provide NO SUCH WARRANTY --But in either case, whether buying from a used car dealer or a private owner, you should always inspect the vehicle THOROUGHLY!!

Interior Inspection:

.is upholstery in good condition (look for: TEARS, STAINS, and BURNS .are the dashboard and headliner in good condition? .do seats adjust easily .are any windows cranks, doors locks, handles, dash controls, or similar items MISSING? .do all interior lights and dash bulbs work? .does carpet condition match the AGE of the VEHICLE? .does carpeting smell of MILDEW or STALE WATER, suggesting moisture UNDERNEATH? (or worse, FLOODING DAMAGE?) .check under the dash at the top of the carpet; are there stains suggesting heater core or air conditioner leakge? .do all accessories (heater, air conditioner, audio system, and alarm) operate fully? test all functions of each system.

A Texas Driver must purchase vehicle insurance for:

.their OWN protection .the protection of OTHER PERSONS .the protection of PROPERTY --remember, as long as you have a driver's license and operate your own motor vehicle you are responsible for the maintenance and upkeep of that vehicle as well as any damage you cause when driving that vehicle --every jurisdiction has FINANCIAL RESPONSIBILITY laws for motor vehicle owners; these regulations make drivers responsible for any property damage or any personal injury that they cause when driving a vehicle

Vehicle Use and Ownership:

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TEXAS LEMON LAW:

<<if you are having REPEATED problems getting your new vehicle repaired, and it was purchased or leased from a licensed TEXAS dealer or lease company, the TEXAS LEMON LAW may be able to help you get it: repurchased repaired replaced --Some examples of vehicles covered by the law: cars, trucks, motorcycles, motor homes, and ATVs --law covers new and demonstrator vehicles that develop problems covered by a manufacturer's written warranty; towable recreational vehicles must be TITLED and REGISTERED in TEXAS to be ELIGIBLE --your used vehicle may be covered under the law; if your used vehicle is still covered by the dealer's original warranty (NOT an extended service contract), or if the problem started while under warranty and it continues to exist, repair assistance of the warranty-related problem may be available to you

What is Financial Responsibility, and What Does Texas law require?

<<the Texas Motor Vehicle Safety Responsibility Act, in Transportation Code 601.051, states that "a person may NOT operate a vehicle in this state unless FINANCIAL RESPONSIBILITY is established for that vehicle; ---Transportation Code 601.002(3) defines financial responsibility as "the ability to respond to damages for liability for a crash that arises out of the ownership, maintenance, or use of a motor vehicle" --most people do this by buying automobile liability insurance as allowed by Transportation Code 601.051(1)

Buying Your New Car?:

Consider these suggestions: .check publications at a library or bookstore, or on the Internet, that discuss new car features and prices; these may provide information on the dealer's costs for specific models and options .shop around; look for the best possible price by comparing models and prices in ads and at dealer showrooms; you also may want contact car-buying services and broker-buying services to make comparisons .plan to negotiate on a price; most dealers will be willing to bargain on their profit margin, often BETWEEN 10 AND 20 PERCENT .if you do not see what you want on the dealer's lot consider ORDERING A NEW CAR; this will involve a DELAY, but if the cars on the lot do not have the options you want, you may have no choice; dealers often want to sell their current inventory quickly, so they may be more willing to negotiate a good deal if you are wiling to buy a car off their lot

There are _______ and ______ obligations of owning a vehicle

IMMEDIATE and LONG-TERM

Insuring a Vehicle:

Insurance Policy== "a financial contract between a POLICYHOLDER and an INSURER, which is ALMOST ALWAYS an INSURANCE COMPANY." .Insurance agrees to pay in the event that the

Learning the Terms:

Negotiations often have a VOCABULARY of their own: ---Invoice Price==this is the manufacturer's INITIAL charge to the dealer (Dealers often receive special dealer rebates, allowances, discounts, and incentive awards that will NOT be shown on the INVOICE PRICE) --Base Price--this the cost of the car WITHOUT OPTIONS, but should include standard equipment and factory warranty; the price is printed on the MONRONEY STICKER ---Monroney Sticker Price (MRSP)---sticker shows: .base price .manufacturer's installed options with the manufacturer's suggested retail price .fuel economy (gas mileage) ***This sticker should be affixed to the car window, it is required by federal law, and may be removed ONLY BY THE PURCHASER --Dealer Sticker Price---this is the price the dealer would like to get for the vehicle; usually on a SUPPLEMENTAL STICKER, it will include: --Monroney Sticker Price --suggested retail price of dealer-installed options, such as additional dealer markup (ADM) or additional dealer profit (ADP), dealer preparation, and undercoating

Purchasing a vehicle is....

SECOND only to a home as the most EXPENSIVE purchase most people make. ---IN 2010, according to the National Automobile Dealers Association, the average price of a new car sold in the United States is $28,400. That's why it's so important to be an INFORMED CONSUMER!!!

PREPARE YOURSELF:

Suggestions on (1)what to bring with you when shopping for a car, and (2) what to look for: -Bring the following items when shopping for a car: flashlight, magnet, notepad, pen or pencil, and a list of question inspection points ---If you are meeting a PRIVATE PARTY to look at a vehicle, try to get there 15 TO 20 MINUTES EARLY; you may discover the vehicle being PREPARED TO VISIT ---Try to get the seller to set a time for you to see the vehicle when it has been SITTING OVERNIGHT; you want to see how it will start first thing in the morning ---ALWAYS try to inspect vehicles in DAYLIGHT --Do NOT be AFRAID to ask the seller to help or to show you something --Take time to perform an inspection to your satisfaction; don't hurry or let yourself be rushed --At some point during a test drive, try to drive at 20 to 30 mph beside a pavement line or side wall to check alignment; open the window halfway and LISTEN for sounds of the vehicle ECHOED by the HARD SURFACE; you should only hear the sound of the TIRES on the roadway. --For practice, inspect a vehicle your family ALREADY OWNS; doing so will familiarize you with the inspection process, and provide reference points for vehicles you are considering to purchase

Now that you have prepared yourself, found the vehicle you want to buy and negotiated a price, it is time to ask them about....

TRADING IN YOUR OLD CAR!!!! .discuss the possibility of a trade-in only after you have negotiated the best possible price for your new car .dealers are more likely to go LOWER IN PRICE on the car when you DO NOT MENTION A TRADE IN when you start negotiating. .be sure to know what YOUR OLD VEHICLE IS WORTH! check reference books or Internet site s that provide its market value. this information may help you get a better price from the dealer for your old car .if you are UNHAPPY with what the dealer offers you, you have the option of SELLING THE OLD CAR YOURSELF!! it will take LONGER, but generally you will get MORE MONEY, it you sell it yourself, than if you TRADE IT IN

How do I know if I Own or Lease a Lemon?

The consumer must prove the following conditions: .the vehicle has a serious defect or abnormal condition .the defect or condition is covered by a manufacturer's written warranty .the consumer reports the defect or condition to the dealer or manufacturer within the warranty term .the consumer gives the dealer a reasonable number of attempts to repair the defect or condition .the consumer gives the manufacturer (preferably by certified MAIL) written notice of the defect and at least ONE opportunity for repair .the defect or condition persists and substantially impairs the vehicle's use or market value, or creates a serious safety hazard .the consumer files a timely Lemon Law complaint and pays the FILING FEE .the vehicle was purchased from a Texas dealer or lease company .for towable recreational vehicles (TRVs) only, the vehicles is registered and titled in TEXAS

Financing Your new Car:

buying a new car can cost a LOT of money! .most of us cannot afford to pay an ENTIRE SUM so we arrange to finance the car OVER SEVERAL YEARS .if you decide to finance your car, you may find the financing rates offered by the dealer may NOT be the best deal you can get; contact lenders DIRECTLY, compare the financing they OFFER with the financing offered by the dealer --"SHOP AROUND FOR THE BEST DEAL!" --when negotiating for a car, do NOT focus on the MONTHLY PAYMENT!!! Compare the ANNUAL PERCENTAGE RATE (APR) and the length of the loan; the TOTAL amount you will pay DEPENDS ON THE PRICE OF THE CAR, APR, and the length of the loan

Before getting a vehicle.....

you need to understand the ENORMOUS responsibility that comes with owning your own vehicle. --Have you considered making an itemized list of all the financial obligations that come with vehicle ownership? --Your parents MUST advise their insurance company that there is another licensed driver in the family and add you their policy. However, if you decide to buy your own vehicle, you will also be REQUIRED to buy an ADDITIONAL INSURANCE POLICY for that vehicle;