【正文】 to pull out all your equity and use this newfound money to buy all sorts of new toys, you should stick to a reasonable financial plan. More sources of debt should not cause you to ignore the need to cover the contingency of losing a job or setting aside money to meet an emergency. set aside 留出，撥出 (時間等 )；把 … 置于一旁 contingency [k?n?tind??nsi] ，可能性 Chapter 5 71 LG6 FINANCING THE TRANSACTION The success of a real estate transaction often hinges on obtaining a mortgage with favorable terms. A mortgage loan is secured by the property: If the borrower defaults, the lender has the legal right to liquidate the property to recover the funds it is owed. Before you obtain such a loan, it’s helpful to understand the sources and types of mortgages and their underlying economics. hinge on 依 … 而定，以 … 為轉(zhuǎn)移 underlying [??nd??laii?] ，潛在的 Chapter 5 72 SUMMARY LG1 Implement a plan to research and select a new or used automobile. LG2 Decide whether to buy or lease a car. LG3 Identify housing alternatives, assess the rental option, and。Making Automobile and Housing Decisions Chapter 5 Chapter 5 2 LG1 BUYING AN AUTOMOBILE Buying an automobile is probably the first major expenditure many of us make. The car purchase is second only to housing in the amount of money the typical consumer spends. Because you’ll buy a car many times during your life—most people buy one every 2 to 5 years—a systematic approach to selecting and financing a vehicle can mean significant savings. Before making any major purchase—whether it’s a car, house, or large appliance—consider some basic guidelines to wise purchasing decisions. Chapter 5 3 ? Research your purchase thoroughly, considering not only the market but also your personal needs. ? Select the best item for your needs. ? Buy the item after negotiating the best price and arranging financing on favorable terms. Be sure you understand all the terms of the sale before signing any contracts. ? Maintain your purchase and make necessary repairs promptly. Exhibit summarizes the steps in the carbuying process. Chapter 5 4 These 10 steps summarize the carbuying process discussed in this chapter. 1. Research which car best meets your needs and determine how much you can afford to spend on it. Choose the best way to pay for your new car—cash, financing, or lease. Consult your insurance agent to learn the annual premium on various cars. 2. Check Web sites like and TV and newspapers for incentives and rebates on the car you would like to buy. This could include a cash rebate or lowcost financing. rebate [?ribeit] Chapter 5 5 3. Decide on a price based on dealer’s cost for the car and options, plus a markup for the dealer’s profit, minus rebates and incentives. 4. Find the exact car for you in terms of size, performance, safety, and styling. Choose at least three ―target cars‖ to consider buying. Get online quotes from multiple car dealers. quote [kw?ut]，援引 n.引文；報價 [ pl.]引號 5. Testdrive the car—and the car salesman. Testdrive the car at least once, both on local streets and on highways. Determine if the car salesman is someone you want to do business with. Is he relaxed, open, and responsive to your questions? Chapter 5 6 6. If you are trading in your old car, you will not likely get as high a price as if you sold it yourself. Look up your car’s trade in value at or . Solicit bids from several dealers. solicit [s??lisit]；乞求 vt.請求，乞求；招攬 (生意 ) 7. Negotiate the lowest price by getting bids from at least three dealers. Hold firm on your target price before closing the deal. 8. Close the deal after looking not just at the cost of the car but also the related expenses. Consider the sales tax and various fees. Get the saleperson to fax you a worksheet and invoice before you go to the dealership. Chapter 5 7 9. Review and sign the paperwork. If you have a worksheet for the deal, the contract should match it. Make sure the numbers match and there are no additional charges or fees. 10. Inspect the car for scratches and dents. If anything is missing—like floor mats, for example—ask for a ―Due Bill‖ that states it in writing. dent [dent] ，凹痕 Chapter 5 8 Choosing a Car Hybrid, diesel, or gas? Sport utility vehicle (SUV) or pickup truck? Sedan, convertible, or coupe? Car buyers today have more choices than ever before, so more than one category of vehicle may be of interest. A good way to start your research is by tapping into the many available sources of information about cars, their prices, features, and reliability. Industry resources include manufacturers’ brochures and dealer personnel. Chapter 5 9 Use Competition to Get the Best Price The following Web sites allow you to submit a free quote request: and Chapter 5 10 Affordability Before shopping for a car, determine how much you can afford to spend. You’ll need to calculate two numbers unless you can pay cash for the entire cost of the car. ? Amount of down payment: This money will e from savings, so be sure not to deplete your emergency fund. deplete [di?pli:t] ，使枯竭 Chapter 5 11 ? Size of the monthly loan payment you can afford: Analyze your available resources—for example, your other expenses, including housing—and your transportation requirements. Don’t fet to include insurance. Your monthly car payment should be no more than 20% of your monthly ine. Chapter 5 12 Operating Costs The outofpocket cost of operating an automobile includes not only car payments but also insurance, license, fuel, oil, tires, and other operating and maintenance outlays. Some of these costs are fixed regardless of how much you dri