Module 28

Buying Your First Vehicle

This module helps students understand the personal, financial, and societal costs of transportation before making one of their first major purchase decisions.

Students compare transportation options, evaluate new and used vehicles, examine buying versus leasing, break down auto loans and amortization, and understand why car insurance and maintenance matter.

Module At A Glance

Grade Levels:

7th - 12th

Est. Length:

2-4 Hours (21 slides)

Activities:

1 Activites

Articles:

0 Articles

Languages:

English & Spanish

Curriculum Fit:

Math, Business, Economics, CTE, Social Studies

Standards Alignment:

CEE National Standards, Jump$tart National Standards & Relevant State Standards

Guiding Questions

What are the factors that go into deciding on a mode of transportation?
What are the non-monetary costs associated with different modes of transportation?
Why is it beneficial to the economy to have easy access to transportation?
How can one go about buying a car that is the best deal for them?
Why can buying a used car be a better deal than buying a new car?
How can maintenance and proper usage reduce the cost of transportation?

Enduring Understandings

Efficient transportation is needed for a society to have a strong economy.
All modes of transportation have societal, financial, and personal costs that should be considered when choosing how to get around.
Buying a used car can offload the rapid depreciation of a new car onto the seller.
Properly maintaining and driving a car efficiently can greatly increase its life and fuel efficiency.
Vehicle ownership can provide independence, comfort, and an opportunity to build credit, but it usually costs more than public transportation.

Module Vocab & Key Topics

Public Transportation: Shared transportation systems such as buses or trains that can move people at a lower personal cost than owning or hiring a private vehicle.
Rideshare: A transportation service, often arranged through an app, where a driver provides a paid ride for a passenger.
Auto Loan: A loan used to purchase a vehicle, typically repaid through fixed monthly payments over a set loan term.
Depreciation: The decrease in a vehicle's value over time, especially during the first years after a new car is purchased.
Useful Life: The period during which a vehicle can be expected to operate safely and reliably before repairs or replacement become more likely.
Trade-In Value: The amount a dealer may offer for a current vehicle when it is exchanged as part of buying another vehicle.
Lease: An agreement to use a vehicle for a set period in exchange for payments, usually without owning the vehicle at the end of the term.
Down Payment: Money paid upfront toward the purchase price of a vehicle, reducing the amount that must be borrowed.
Annual Percentage Rate (APR): The yearly cost of borrowing money, expressed as a percentage, that affects the total cost of an auto loan.
Loan Term: The length of time a borrower has to repay a loan; longer terms may lower monthly payments but increase total interest paid.
Amortization: The process of paying off a loan over time through regular payments that cover both principal and interest.
Principal: The original amount borrowed on a loan, not including interest or fees.
Interest: The cost of borrowing money, usually paid as part of each loan payment.
Repossession: The process where a lender takes back a vehicle because the borrower did not keep up with required loan payments.
Car Insurance: Coverage that helps pay for property, liability, and medical costs related to a vehicle accident, often required by state law.
Liability Coverage: Insurance coverage that helps pay for injuries or property damage a driver causes to someone else.
Registration: The official process and fee required by a jurisdiction to legally operate a vehicle on public roads.
Maintenance and Repairs: Regular service and fixes needed to keep a vehicle safe, reliable, and efficient over time.