This week’s assignment in Personal Finance is to find the perfect car for under $5,000. Using the tools listed below, do your own research to find the right car for you.
1. Write Your Story
Write an article (800 – 1000 words) describing how you made your decision and tell me how you used the resources listed below in your research to find the best car to fit your needs. You may want to share how you came to believe that this is the perfect car for you. Did you choose a fine luxury car or a sturdy pick-up truck. Why? Was it a two-door sports car or a five-door mini-van? Explain why this particular model was the right car for you and then tell me how you found just the right vehicle and why it was the best value out of all the vehicles you looked at during your research.
2. Determine The Value of Your Vehicle
- Edmunds – Used Car Research and Pricing Guidance used by insurance companies and people like you: http://www.edmunds.com
- Kelley Blue Book – Used Car Research and Pricing Guidance used mostly by consumers and less by insurance companies. I’ve bought and sold a hundred used cars and I always start here: http://www.kbb.com
- AutoTrader – Used Car Search. This is a great place to shop and compare prices AFTER you determine which model is right for you: http://www.autotrader.com
- Craigslist – Used Car Search is another great place to find a used car. I bought my Harley Davidson FatBoy here: http:www.craigslist.org
3. Check CarFax
CARFAX – Vehicle History Reports can be a very valuable resource. Listen to this episode to learn the secrets of making the best deal on a used car from the experts. For your assignment, be sure to tell me the details of the vehicle you want to buy: http://www.carfax.com (were you able to find any information about the vehicle you want to buy on CarFax?)
4. Have Fun With The Assignment
As always, my purpose in this assignment is for you to learn something practical. Our topic this week is Bargaining and Negotiating. During class, we will go over Seven Rules to Negotiate Anything – including your next car purchase.
5. Listen to This Interview and Comment
My friend, James Kinson, is an expert at buying used cars. During our interview, we had a lot of fun outlining What Matters Most in the used car buying process. Share this with anyone who is in the market for a used car. The Millionaire Next Door probably paid cash for her car. You already knew that but did you know she bought it used? Learn how to buy your next car – listen now and again when you head out the door to inspect your next potential used car. Here’s a very rough outline of our interview:
1. Your Mindset and Your Research Tools
2. The Actual Inspection
3. Test Drive Like a Master Mechanic
James has come to believe that paying cash for cars makes sense. James spent time reading and studying both Dave Ramsey and Dr. Thomas J. Stanley. Dave Ramsey says “Debt is dumb.” While Dr. Stanley helps us understand what most millionaires really look like. James and I both feel like our lives are better for having discovered these two leaders along with others who have help shape our thoughts and money management methods.
Earn Extra Points When You Post Here
If you’re a student at the Bauer College of Business at University of Houston in my Personal Finance class, here’s your chance to grab some easy extra points. If you’re brave and if you want, post your story here and I’ll give you 20 extra points in class (but you have to meet these standards to get the 70 max points for this assignment:
1. Listen to The Interview
2. Write Your Summary of Your Experience (800 – 1000 words and be sure to address the following details)
3. Tell me What Vehicle You Selected – and Why
4. Explain what Resources you used in Your Research
5. Highlight Interesting Details that helped you make your decision
6. Be sure to share something you learned from my interview with James Kinson
Remember, this week in class we will focus on The Seven Rules to Negotiate Everything. Each topic is designed to help you achieve your goal of becoming a Millionaire by 50. My goal is to help you achieve Success, Significance, and Satisfaction by managing money with purpose and commitment.