Cars and Loans

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For the next meeting, they discuss about "Cars and Loans". They explained about cost of owning and operating a motor vehicle; sources for obtaining loans; the steps to get a car loan; and what should you do if you can't afford your payment. The cost of owning and operating a motor vehicle have two types, such as ownership (fixed) costs and operating (variable) costs. The ownership (fixed) costs are depreciation (based on purchase price); interest on loan (if buying on credit); Insurance (a term that used to refer to financial compensation for life, property, and health which involves regular payment for a period time in exchange for a policy that guarantees such protection); and Registration fee, license, taxes. But, the operating (variable) costs are gasoline (required fuel that used for motor vehicle); oil and other fluids (used for keeping the components in the machine); tires; maintenance and repairs; parking and tolls. 

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They also explained about the sources for obtaining loans, such as banks (the best place to start shopping for loans and usually many people loans from bank); consumer finance companies (small loan companies which usually offer higher interest rates); dealership (the authorized seller); family and friends (usually used verbal agreements). There have 3 steps to get a car loan. The first step is choose your car ( by choosing a car that you want to buy, so you will know how much money that you need to borrow to buy the car). The second step is apply for car loan (you can apply for loans from some banks or some loans provider). And the last step is get your car and repay your loan (if your loan is approved, your loan provider will pay the full price and the car becomes yours). For repay you loans so you have three parts, such as the amount you have to pay each month (you must know and prepare how much money  that you have to pay for each month); the term of the loan (you must decide the term of your loans at the application stage, usually repaid over three or five years); and the rate of interest you’ll be charged. They also explained about the ways whenever you can't afford your payments, such as don't trade the car into the dealer (because the car will be appreciated cheap if you trade the car into the dealer); sell the car yourself (if you try to sell the car yourself so there is still a possibility of higher priced cars); and buy a cheap car with cash.