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UA CSM 204 - Chapter 8
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CSM 204 Chapter 8 LectureOutline of Previous LectureI. What kind of loan should you seek?II. Student loans – appendixIII. The cost of creditIV. Tackling the Trade-OffsV. Calculating the cost of creditVI. Cost of open-ended creditVII. Other cost factorsVIII. Credit card accountability- Responsibility and Disclosure Act of 2009IX. Why consumers don’t payX. Reasons for debtXI. Debt warning signsXII. Getting helpXIII. What if you become overextendedXIV. What if you don’t pay?XV. Quiz 2-2Outline of Current LectureI. Financial Implications of Consumer DecisionsII. Practical Purchasing StrategiesIII. Common Consumer MythsIV. Making Major PurchasesV. Resolving Consumer ComplaintsVI. Personal Consumer ProtectionVII. Quiz 2-3Current LectureChapter 8- Consumer Purchasing Strategies and Legal ProtectionFinancial Implications of Consumer DecisionsPaying higher prices due to credit usePaying less and getting poor qualitySelecting brands that are difficult to repairThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Ordering online, by phone, or mail may be easy but returns are notTakes time to comparison shopPractical Purchasing StrategiesTiming purchasesBuying right after Christmas as opposed to before ChristmasBuying when people are pushed to meet their monthly goalsBuying when there are going to be dealsLabor day dealsBlack Friday dealsEtc.Store selectionBrand comparisonLabel informationPrice comparison Are you paying more at one store than another for the same product?Evaluate warrantiesService contractsCommon Consumer MythsI can return my car within 3 daysAs soon as you bought the car and drove it off the lot, it belongs to youMy credit report is confidentialMy creditors can’t call me at workYou have to tell them they can’t call you at work in order for them to stop calling your workYou can’t repossess my car on private propertyAn auto lease is like a rentalIf I lose my credit card, I am liableLiable for the first $50 in charges per card if you call within the first 48 hours from which the thief used itLiable for the first $500 in charges per card if you call after the first 48 hours in which the thief charged your card to 60 day after.Liable for all charges after 60 daysException is if the thief used your PIN to make charges. If he/she used your PIN, you get nothing back no matter when you callIt says I won! It must be trueIf you did not enter the Canadian lottery, you cannot win the Canadian lotteryMaking Major PurchasesPre-shopping ActivitiesProblem identificationNeeds vs. WantsDo you need that new car or do you want it?Information gatheringPersonal contactsMedia informationIndependent testing organizationsGovernment agenciesOnline sourcesEvaluating AlternativesComparison shoppingSelecting optionsMechanicalConvenienceAestheticNew or usedSources of Used VehiclesNew car dealersUsed car dealersIndividualsMake sure you have a report to prove that routine maintenance has been done on the carAuctionsUsed car superstoresOnline guidesBuy or leaseLeasing a VehicleLower payments and cash outlayNo ownership in the vehicleMaximum number of miles set by the car companyNeed to know the numbersCapitalized costMoney factorPayment amountResidual valueThings to Do while shoppingGet brochures to compare comparable vehiclesLeave someone at home that needs to be there when you are going to buy a car so that you won’t be hassled when you are just lookingDetermining Purchase PriceKnow information about the vehicleDeal with person of authority to lower priceGet starting price information in advanceGet price prior to mentioning trade-in“I might trade in and I might not. I will decide later.”Look for rebates or low interest rates“It says here that I can get a rebate if I don’t finance the car. I would like to do that.”Compare financing alternativesSales Techniques to AvoidHigh BallingOffer you what seems to be a really good price for your car, but do not come off of the price of their car at all.Low BallingAdvertising in the newspaper for the lowest possible price for the carHow much can you afford per monthIt is none of their business what you can afford to pay a month“I will talk about financing the car once I decide if I am going to buy the car and what the price of the car is”The first price will be too highIf you can’t get the price you want after negotiating, you need to be able to walk out and look at other cars. If there is anything left in thedeal they can give up, they will give it up when you stand up to walk out of the building.Just make a small depositIt is only $100 above dealer costPreprinted sales agreementsUpside downYou owe more on your car than it is worthThe Best BuyFirst you decide on the quality and the features you need, then select the best price based on the things you have decided you must havePost-purchase ActivitiesLemon LawsLemon laws are American state laws that provide a remedy for purchasers of cars and other consumer goods in order to compensate for products that repeatedly fail to meet standards of quality and performance.Automobile operation costsMotor vehicle maintenanceServicing sources and problemsResolving Consumer ComplaintsStepsTake it back to the place of purchase at least three times and see if you can get the problem resolvedWrite the manufacturer’s headquarters and tell them exactly what you have done thus farConsumer AgencyMediationSolution is recommended, but not enforcedArbitrationSolution is bindingLegal action/optionsSmall Claims CourtClass action suitsWhen many people have the same problem with the same thingUsing an attorneyLegal aid societyPrepaid legal servicePersonal Consumer ProtectionShop at reputable companiesDo not sign contracts without reading and understanding themKnow the costs of creditDo not buy on impulseQuiz 2-31. 1-True2. 3-Selecting the most convenient store3. 1-New Car Dealership4. 2-Arbitration5.


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