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Car buyers across the nation turn to CONSUMER REPORTS for help in choosing a car. Because the car is such a "big-ticket" item, people usually take extra care in shopping for one.
CONSUMER REPORTS rates new cars in almost every issue. Typically, the April issue is devoted entirely to autos.
Many teachers report that the car issue is very popular with students. So many use it to form the basis of a unit on comparison shopping.e how to evaluate and shop for a product, or combine both approaches.
The April issue generally includes profiles and ratings of more than 100 new cars based on performance tests and reader experiences. In addition, it gives reliability reports and shopping advice for used cars.
 LEARNING OBJECTIVES
- To become aware of the types of auto information available in CONSUMER REPORTS and how to access it.
- To identify criteria for evaluating new (or used) cars.
- To learn how to use those criteria to select a suitable car.
- To learn how to shop for a car.
- To analyze and evaluate auto ads.
- To compare different methods of financing a car.
VOCABULARY
base price
crash test
dealer price
(invoice price)
depreciation
extended warranty
lease |
options
road test
selling price
service contract
standard equipment
sticker price
trade in |
KEY CONCEPTS
- A car is a costly item. Not only is the initial cost great, a car costs a lot to operate, maintain, and insure. And most cars depreciate in value rapidly.
- Before choosing a car, one should consider type, performance, predicted reliability, safety, price, and predicted depreciation. In its evaluations of cars, CONSUMER REPORTS gives data on all these criteria.
- Size, horsepower, and options can add to the price of a car. A small economy car with few options can cost far less than a big car that's loaded.
- A safe car is one that can help you avoid a crash --or survive one if it happens. Features such as antilock brakes help in avoiding a crash. Features such as airbags and seatbelts help in surviving one.
- Doing preliminary research on cars before going shopping can help consumers get the best car for their money. Magazines such as CONSUMER REPORTS can help.
- Car prices vary from seller to seller and are often negotiable. Comparison shopping and bargaining for most cars can save consumers money.
- The cost of financing a car can vary greatly. Sometimes a dealer will offer low-interest loans. But consumers may find better interest rates at banks or credit unions. It pays to shop around.
- A used car can be a good deal. But it can be a gamble as well. When buying a used car, it pays to research the car, buy from a reputable seller, and have it checked by a mechanic.
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TEACHING STRATEGIES
BEFORE READING
Explore the concept of "a good car."
- If you said a certain car was "a good car," what features and characteristics would you have in mind? Would these be the features and characteristics you'd choose if you could have any car you wanted? Explain.
- Now be realistic. If you were buying a car today, what cars would you consider? Why? What features would you want? Why? How important would style, power, performance, reliability, safety, fuel-economy, and comfort be? Explain. What features would be optional? Which would you avoid? Why?
Preview the how-to-use-this-issue section..
- What would be the first article you'd consult if you were looking for a particular new car model? If you were unsure which model might be right for you?
- If you were thinking about a used car, where would you find buying tips?
DISCUSSION AND ACTIVITIES
THE NEW CARS.
- What's hot in new cars this year?
- Is the car market changing in any significant way? Explain.
- Which new cars does CONSUMER REPORTS consider the best of the best? Why?
SAFETY
- What important features and performance factors make a car safer to drive? What features help you avoid a crash? How? Survive one if it happens? How? How does CU evaluate car safety?
- In predicting the safety of a car, how important are crash-test results? Is the way you drive likely to be a greater or lesser indicator? Explain.Analyze safe design. Have volunteers research and then make a presentation on auto designs and features that can help prevent crashes and/or protect lives if a crash happens. Follow up. Have students research which cars highlight safety in their ads. Discuss.
- Would you consider buying a car that received a low safety rating? Why or why not? What safety equipment would you insist on in a new car? Explain.
- Why don't all cars have the latest safety features? (Consider cost, demand for lower prices, lack of consumer demand.) Analyze safe design. Have volunteers research and then make a presentation on auto designs and features that can help prevent crashes and/or protect lives if a crash happens. Follow up. Have students research which cars highlight safety in their ads. Discuss.
- Which of the cars you read about seem safest? Least safe? Why?
Analyze safe design. Have volunteers research and then make a presentation on auto designs and features that can help prevent crashes and/or protect lives if a crash happens. Follow up. Have students research which cars highlight safety in their ads. Discuss.
Conduct a safety campaign. Have students conduct a safety awareness survey at school to find out how much students know about car safety. Then based on the data they collect, have them develop a safe-driving campaign. This might entail developing bulletin board displays, creating car safety handouts, and having speakers talk about safe driving and safe cars.
TESTING
- When testing cars, what qualities and characteristics does CU evaluate? How does it conduct the tests? Which tests do you think are more important --CU's auto track tests, its on-road tests, or its everyday driving tests? Why? Do you think CU's testing procedures are scientific? Explain. (Explore the scientific method and how it applies to car testing.)
- If you were testing cars, what performances would you score? Which scores would count most when determining the cars' ratings? Least? Why?
PROFILES AND RATINGS
- Study the profiles of new cars. What information do they give about each car? What information is most important to you? Why? Name three cars that are recommended by CONSUMER REPORTS.
- Study the new car ratings. Into what categories are the cars divided for comparison?
- Pick one of the categories of cars CONSUMER REPORTS rated. Which car rated highest in that category? Lowest? What criteria did CONSUMER REPORTS use to establish the cars' overall scores?
- Would you consider buying a car that did not get a good rating from CONSUMER REPORTS? Explain.
Student Activity 3-A1: Rate Your Dream Car
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ACTIVITY OBJECTIVES
- To identify factors to consider when rating a car.
- To learn how to use these factors in evaluating a new car.
- To identify sources of information to consult when shopping for cars.
ACTIVITY PLAN
- Encourage students to describe their dream car. Why would they like to own this car? What do they think has influenced their choice?
- Have students brainstorm a list of factors they would consider when gathering information about their dream cars. Where could they get this information? How important is this information?
- After students have identified the make and model of the car they want, ask them to complete the activity sheet.
- Discuss their answers. Did gathering information about the car change their opinion in any way? In general, how important is it to become an informed consumer before making a major purchase, such as buying a car?
ADDITIONAL ACTIVITIES
Create a car-buying plan. You're in the market for a new or used car. How will you go about choosing a model that's right for you? How will you make sure it's reliable and affordable? What steps will you follow to make sure you get a good price? Have students review the advice CONSUMER REPORTS gives, then outline their strategy.
Compare cars. To help students compare/analyze data from CU road-test information, have them create and use a chart like this. Then, based on the information, have them compare the advantages and disadvantages of each car. Follow up. Have students list the selling strategies they might use if they were making a sales presentation for one of the cars.
| CAR |
PERFORMANCE |
COMFORT/CONVENIENCE |
SAFETY/RELIABILITY |
| __________ |
_____________ |
_______________________ |
____________________ |
| __________ |
_____________ |
_______________________ |
____________________ |
Defend an opinion. Have students choose one of the cars from CU's "best and worst" list. State why they agree or disagree with CU's evaluation of these cars. |
RELIABILITY AND RELIABILITY SUMMARIES
- How are cars listed in the reliability indexes? What are the reliability indexes based on? How does CU get its reliability information?
- Can you use the reliability indexes to foretell the performance and reliability of a new car? Why or why not? How important is reliability?
- Is the car in which you ride included in the reliability index? If so, how does it measure up?
- What is the difference between CU's reliability indexes and its frequency-of-repair charts? What trouble spots are reflected in these charts?
- When choosing a car, what would be more important to you: road-test results, the reliability index, or frequency-of-repair data? Why? Compare reliability indexes to frequency-of-repair data. Have students consult the frequency-of-repair charts to explain why a particular car got the reliability score it did.
BUYING OR LEASING
- What are some steps for making sure you get the right car at the right price?
- How could knowing what a dealer had to pay for a car help you get a good deal? What do you think is a reasonable dealer markup? Explain.
- Is this good or bad advice: "Don't fall in love with any one car"? Explain.
- What are the advantages and disadvantages of choosing a car from a company that won't negotiate a price?
- At what point in the deal-making process should you let a dealer know you have your old car to trade in? Why? At what point should you discuss dealer financing? Why?
- What are some ways to pay for a car? (Consider paying cash, seeking a loan, leasing.)
- When might dealer financing be a good deal? When might financing by a bank or credit union be a good deal? Where else might you borrow money to buy a car?
- What is a lease? What are the advantages and disadvantages of leasing? Who could benefit most from leasing? Explain.
Determine your bargaining margin. Before negotiating a price with a dealer, consumers should know the difference between the final wholesale and retail price &endash;&endash; this difference will be the room they have to bargain. Have students create worksheets to figure the differences. The worksheets might look like this:
Worksheet
Make _____ Model _____ Trimline _____ |
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Wholesale price |
Retail price |
Basic car
Options/Options packages
Destination charge
Subtotal
Rebates
Total |
_________________
_________________
_________________
_________________
_________________
_________________
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_________________
_________________
_________________
_________________
_________________
_________________
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Research auto-loan sources. Have small groups each research a new-car financing source (savings and loans, commercial banks, credit unions, auto dealerships, finance companies). Have each group calculate the cost of purchasing one of the car models evaluated in the magazine. Discuss which source would be better and why. Consider such variables as down payment, interest rate, number of months for repayment, and total cost.
Research auto leasing. Have students obtain auto leasing ads and read the fine print. Who owns the car when the lease period is over? What mileage limitations are built into the monthly fee? What risks does a lessee take? When and for whom might leasing be a good idea? Bad idea?
OPTIONS
- Consider the car you ride in now. What options does it have? Which are important to you? Which are not so important?
- What options that you don't have do you wish you had, if any? Why?
- What are two ways options are sold? What's the best way? When is a package a good deal?
- What is an extended warranty or service contract? CU thinks most car owners don't need one. Do you agree or disagree? Why?
Student Activity 3-A2: Options Survey
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ACTIVITY OBJECTIVES
- To identify which car options are important to a sampling of consumers.
- To compare the survey to CONSUMER REPORTS' recommendations.
- To decide which options are most desirable and why.
ACTIVITY PLAN
- Discuss which options students would like to have in a car, and why. What experiences have they had with these options? Focus the discussion on which options the students consider really important. What factors influenced their decisions --safety, mechanical considerations, security, convenience, environment, service, prestige?
- Have students conduct a car-options survey among their friends and family. Discuss survey answers in class. Which options did the participants consider most desirable? Graph or chart the results.
- Discuss how the results of this survey compare to the Consumer Reports recommendations.
ADDITIONAL ACTIVITIES
Compare the cost of options. Ask volunteers to visit a car dealership, study the stickers on new cars, and write down the list cost of various options and options packages. Compare the cost of an options package to the individual cost of the options in the package if purchased separately. Are the options packages good buys? Why or why not?
Make sense of options. Have students create an options chart that lists worthwhile options, describes the options, and explains why each option is worthwhile.
| OPTION |
DESCRIPTION |
WHY WORTHWHILE |
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| _______________ |
__________________ |
_______________________ |
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| _______________ |
__________________ |
_______________________ |
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FACTS AND FIGURES
- Review the types of data given in the specifications and body dimensions tables. Ask car buffs to explain any data that other students have trouble understanding.
- Which data would be important to you in choosing a car? Why?
USED CARS
- What are the advantages of buying a used car? The disadvantages? What is the most important criteria to consider when choosing a used car? Why? How can you determine a used car's reliability?
- What kinds of used cars are usually the best value? Which are usually the biggest gamble? Why?
- Where should you shop to get the best value in a used car? What are the potential benefits and risks of buying from a private owner? A new-car dealer? An independent used-car dealer? Service stations and independent garages? Banks and other lenders?
- Describe how you'd judge a used car. What could you find out by just looking? What other research would be helpful? Under what circumstances might you have a mechanic check out the car?
Student Activity 3-A3: Choose a Used Car
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ACTIVITY OBJECTIVES
- To understand the importance of comparison shopping for a used car.
- To identify sources of information when comparison shopping for a car.
- To draw conclusions based on increased consumer awareness.
ACTIVITY PLAN
- Discuss with the class the importance of comparison shopping for a used car. What factors should students consider (price, individual need, etc.)? How would students rank these factors in order of importance? Where would students get more information about the cars they are considering?
- Suggest that students select a type of used car to shop for that would meet their individual needs. Ask them to list the necessary information about the car they want to buy.
- Discuss students' answers in class. How does CONSUMER REPORTS rate each car's reliability? Ask students to explain on the back of their paper which car they would investigate further. How would they go about investigating that car?
ADDITIONAL ACTIVITIES
Find more information about the car of your choice. Ask students to check out one of the cars they researched for this activity sheet. Suggest that they look at the car that was advertised. How does the car compare with its description in the ad? Discuss their experiences in class. |
Student Activity 3-A4: Used-Car Checklist
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ACTIVITY OBJECTIVES
- To identify factors to consider when judging a used car.
- To use these factors to evaluate the condition of a used car.
- To appreciate the importance of evaluating the condition of a used car before buying.
ACTIVITY PLAN
- Discuss factors that students would consider when buying a used car. Encourage students to relate personal experiences they may have had purchasing a used car. Why is it important to evaluate the condition of a used car before buying it?
- Have students evaluate a car they ride in. Suggest that students work in pairs and help each other complete the evaluation.
- Discuss students' answers in class. Was the checklist helpful? Why or why not? Were there any factors that students would not consider if they were evaluating a used car? Are there any factors that might be added to the list to make the evaluation more complete? Explain.
- Do you think the car you evaluated would be a good buy (provided the price was right)? Why or why not?
ADDITIONAL ACTIVITIES
Write an ad. Have students write a used-car ad for the car they evaluated. Suggest that the ad accentuate the car's good points and put its bad points in the best light. Post the ads and have students decide which ones might draw the most potential buyers, and why. |
ADDITIONAL ACTIVITIES
Analyze auto ads. Look for auto ads in magazines and newspapers and on TV. What are the major selling points and appeals? Compare to CU's ratings. How reliable are the ads? Follow up. Now write an ad for the car of your choice, accentuating the car's best points without misrepresenting its weak ones.
Calculate fuel costs. Have students report the cost of gasoline at local filling stations and then calculate the current average cost of gas in your community. Challenge students to use the overall miles-per-gallon figures in the ratings charts to calculate the cost of driving 15,000 miles in a new car of their choice at the current gas price.
Compute driving costs. Have the class compute the costs of owning and driving a car. Consider the purchase price, title transfer fees, license and registration, insurance, taxes, fuel, maintenance, and repairs.
Research lemon laws. Discuss the purpose of lemon laws and have students research which states have and don't have them. If your state has one, have students find out the scope of its protection and when, why, and how consumers can use it.
Estimate insurance costs. Have students research the cost of car insurance. About how much would students expect to pay for insurance on a new car costing about $10,000? How would the following affect the cost of insurance: Safety features? Horsepower? Good grades? A good driving record? A bad one? The amount of deductibles?
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