First Gear

Everything you need to know about your first car

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Welcome to the wonderful world of wheels!

We know that every single person dreams of owning a car. Its understandable: a car epitomises independence. Success. Stature. Mobility. The freedom to go your own way. But we also know that the decision to purchase a car can be fraught with challenges. What car do you buy? What can you afford? What about the servicing requirements? What safety features should you look out for? What about safety out on the road? These and many other important questions plague your mind. First Gear aims to address all these topics and many other essential issues associated with car ownership. We have canvassed the opinions of the worlds leading authorities and this book aims to give you independent, authoritative and utterly essential advice. We want to take the mystery and malaise out of car ownership, and replace it with easyto-follow advice and tips so that your road to car ownership isnt filled with potholes! We trust that it will provide you with a stress-free introduction to the world of wheels. Enjoy your first car; youve worked hard for it!

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Table of Contents
Chapter1: First things first Chapter2: Choosing your ride Chapter3: Dealing with the dealer Chapter4:Signing on the dotted line Chapter5:Technology on wheels Chapter6: Safety in your car Chapter7:Safety on the road Chapter8:Avoid fuel funk Chapter9: Tech talk Chapter10: SOS Chapter11: Bling it on Chapter12:Green 06 14 22 28 36 44 52 62 70 78 84 88

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Everythingyouneedtoknowaboutyourfirstcar PublishedbyFordCommunications 20th Floor, Lake Rajada Oce Complex, 193/82-86 Ratchadapisek Road, Klongtoey, Bangkok, 10110, Thailand. Director/Publisher:Whitney Foard Small; ManagingEditor: Mia Barrett; Editor: Charleen Clarke; Writers: PRISM Asia Pacific and Africa Content Factory; Illustrator: Junho Kim; Design:Content Factory, Europe. A publication of Ford Communications Network. December 2011.

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Meet Jack and Jill

First Gear is a hands-on guide aimed at men and women who are purchasing their very first car. Bearing this in mind, the authors of this book chose to come up with two fictional characters called Jack and Jill, because they represent archetypal readers. So who are Jack and Jill? Well, we believe that they are typical first-time car buyers. Jack is a young guy who aspires to buy an ultra-fast sports car (although maybe his wallet wont quite meet his aspirations). Jill is a young lady who wants a stylish car that suits her lifestyle and her desire to be at the height of fashion. Were talking two typical young people a man and woman with hopes, aspirations and dreams that are shared with millions of people all over the planet. We hope that you can relate to Jack and Jill and that you can learn from some of their experiences at the dealership, out on the road or whenever you drive your car.

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CHAPTER 1:

First things rst

Money isnt everything but it sure does help when you want to buy a car. So, unless a long-lost great uncle has left you a small fortune, the first question most of us need to ask before shopping for a new car is: What can I afford to drive?
But your answer needs to take into account more than just the purchase price. This, were afraid, is just the tip of the motoring iceberg. The costs of financing, maintaining, repairing and insuring your car along with incidental expenses such as parking and registration fees also need be factored in. As Ford Asia Pacific and Africa Director of Sales Mark Winslow points out: Its not only the price of the car itself, but the cost of ownership that impacts affordability. Of course, most guys take young Jack for example cant wait to take their girlfriend for a cruise in a flashy new convertible or a racy Focus RS. After all, they do have a certain image to maintain. But, for most first-time buyers, the more affordable Figo subcompact or the Fiesta are more realistic choices. And the really terrific news is the fact that they are still fun cars to drive you really dont need to spend a small fortune in order to have a cool, hip motoring experience. It all boils down to what you can afford. Customers should not feel too much pressure from their car payment, notes Ford Automotive Finance (China) Vice President of Sales and Marketing Eric Chou. If a customer chooses to finance a car, his monthly dispensable income (money left over after taxes, rent or mortgage payment, and basic living expenses are deducted) should be more than twice the amount of the monthly payment.

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Or, to put it another way, the customers average bank account balance should be at least double the amount of the car payment, he adds. The authoritative Consumer Guide Automotive says it could even be a good idea to shop for finance before going car hunting. Decide how much you can afford and how much you are willing to pay before you shop for a vehicle. If, like most consumers, you have to borrow money, shop for a loan before you shop for a vehicle, it suggests. Standard Bank of South Africa advises prospective car buyers to very carefully consider how a car purchase will impact

their personal finances, because everyone should aim to save at least a small portion of their pay check. The first question to ask is how much you can afford to pay on a monthly basis, says Keith Watson, director of strategy and business support, Standard Bank. If the car is going to add 10 percent to your monthly debt, that is probably manageable. As much as guys such as Jack get a kick out of driving the latest, sexiest set of wheels, your car should not cost more than your house! How much fuel your car will consume is also an important budget consideration. Estimate the average distance travelled each month, and divide this by the cars

4.5l/100km
The fabulously low fuel consumption of the Fiesta 1.6 TDCi a fun but sensible buy.

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estimated fu el mileage to figure out ho many litres of w petrol it will take to get yo where you ne u ed to go. Don t forget to al for future pr low ice increases at the pump you could ru or n out of mon ey before yo out of fuel! u run When estim ating the co st of owning new car, repa a irs and maint enance also come into pl ay. Once you ve chosen th model and br e and that tickl es your fanc a good idea y, its to gauge the reliability of target vehicl the e. Informatio n about wha of repairs a sp t types ecific model is likely to ne over time is ed available on line and with consumer gr oups, as wel l as data abou consumer co t mplaints an d recalls. Fa cebook

fan pages exist for many new vehicles, and lots of helpful information, from both current owners and the manufacturer, can be found there. Even the most reliable cars on the market need periodic maintenance and repairs. Tyres, filters, fluids and belts need to be replaced regularly. A stray pebble on the highway could damage the windscreen. And, if you are unlucky and have an accident, you could be replacing a fender or headlight and more.

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The cost of replacement parts can vary greatly. Imported vehicles are often the most expensive and take longer to repair because spare parts may need to be shipped from abroad. The more frugal among us save up all their pennies before heading to the dealership to make their purchase. But most car-buyers only have enough money saved for a down payment and will need some sort of financing plan to complete the sale. Dealer finance is often the most convenient and popular option. At reputable dealerships, the staff will sit down with the customer and tailor a payment plan to meet their individual needs, after calculating monthly income, household expenses, mortgage payments, and food and entertainment expenditures. They can adjust the amount you must pay each month, or the number of payments you have to make over the lifetime of the contract, depending on the buyers financial situation.

7 out of 10

The number of ca which women are

Five fast buying tips

Keepyouremotionsundercontrol.Beconservativeand dontrush;youllhavetolivewiththispurchaseforyears tocome Ifyourefinancingyourcarpurchase,yourmonthly paymentshouldnotputabigstrainonyourbudget.Dont biteoffmorethanyoucanchew Makesureyouunderstandallthetermsofyourbuyers contract,payingspecialattentiontotheinterestrateand whetherthereisaballoonpaymentrequired Figureouthowmuchitwillcosttokeepthecarrunning beforeyoubuy.Remember:costofownershipcounts! Shoparoundforthebestinsurancerates

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ar purchases in e involved in the UK.

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Keep in mind that lower monthly payments mean youll be paying off the car for a longer period of time, and more of your hard-earned money will be going towards the interest. And remember that interest rates rise and fall. Rising interest rates could affect the terms of your car repayment, along with other debts like a home loan or credit card. Even a small rate hike could raise your monthly payments across the board and bust your budget, so its advisable to allow for some wiggle room. In certain instances, you can fix the interest rate (this means that it will neither increase nor decrease, so you know exactly what you will be spending for the entire duration of the finance plan). Chat to the dealer about this possibility; he/she will be able to explain exactly how it works.

In conclusion, its very important not to overreach. (You know what they say about car sickness: its the feeling you get when the monthly payment is due!) So its best to be conservative when calculating what monthly instalment you can afford, especially if this is your first car purchase. Its seriously bad news to default on a car payment; this could affect your credit rating and thus your ability to get a loan, buy a house, or a second car in the future.

611 million

Before you sign on the dotted line, make sure you can see the bigger picture and understand all the payments that need to be made. Some finance plans call for what is known as a balloon payment. This is the total balance remaining on the car at the end of the payment plan, and it usually needs to be paid in full as a lump sum after all the monthly payments have been made... which even though its at the back of your mind, is still a nasty surprise if you dont have the cash. If you dont understand all the terms and conditions of the contract, ask an independent financing professional to look it over before you make any firm commitment.

The predicted number of cars in India by 2050, making it the worlds largest car market.

If you begin to miss monthly car payments, sometimes the dealership can arrange a new payment schedule. But, if you fall too far behind, you could lose the car entirely... and all the money you have invested thus far! So make 100 percent sure you commit to a monthly payment you can handle to avoid an unpleasant visit from the Repo Man (just in case you dont know this guy; hes the chap who comes to repossess your possessions when you dont pay!)

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Insider insurance tips

Insurance requirements vary from country to country, so be sure to check the laws in your country before you purchase a vehicle. Irrespective of the rules and regulations within your specic country though, insurance is a nobrainer, because that car of yours represents a massive investment! As such, Ford Asia Pacic and Africa Director of Sales Mark Winslow advises customers to purchase comprehensive coverage to fully protect their investment. If you cant a ord comprehensive insurance, perhaps you should consider a less expensive car, he says. Sports cars are generally more expensive to insure, and young drivers o en pay higher monthly premiums than older, more experienced drivers with an established safety record. For smaller monthly payments drivers can opt to pay a larger excess, or deductible, in case of an accident. This is the amount the car owner must pay before the insurance company will reimburse him/her. A higher deductible means lower payments, and vice-versa. For example Jack visited his local insurance salesman to see how much it would cost to insure a new Ford Focus. Since the down payment on the car was going to wipe out his savings, he was looking for the lowest monthly payment plan possible. He didnt want to spend more than USD 1,500 per year for comprehensive coverage. The salesman, a er factoring in Jacks driving record, age, marital status and vehicle model, o ered Jack a plan that tted his budget: USD 130 per month would pay for comprehensive coverage of the new Focus. Jack was thrilled; this was a price he could a ord. But, a er reading the policy closely, Jack was confused. Whats this bit about a USD 2,000 excess? he asked. The salesman explained to Jack that, if he had an accident, hed be responsible for any repairs that cost less than USD 2,000. If the car needed two new doors and a fender, and the body shop charges USD 2,300 for the job, Jack would have to pay USD 2,000, while the insurance company would pay USD 300. Wait a minute! Jack told the insurance agent. I cant a ord to pay USD 2,000. A er I buy this car, I wont have any savings le ! The salesman crunched the numbers again, and came up with another plan for Jack, which provided the smallest excess possible, USD 100. But this time, the monthly payment came out to more than USD 235 per month. Thats almost twice as much! Jack protested. I cant a ord that! Im very sorry, sir, the salesman replied. But this is how insurance works. The more you pay up front, the less you will have to pay for any damages later. If you want to pay the minimum premium possible, thats ne. But further on down the road, it could cost you a lot more.* Source: Progressive Insurance Co.
*This statement is a guideline only, and not advice that should be relied upon. Insurance advice must be sought from an accredited financial services provider.

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Choosing your ride

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CHAPTER 2:

As the Wisebuyers Guide notes: Buying a car requires commitment. The two of you are going to be seeing a lot of each other, so its best if youre happy. Theres a lot of money at stake, so you dont want to be disappointed. So where do you start? How do you pick the vehicle thats absolutely perfect for you? Should it be something practical and sensible or something wild and wicked? And how do you know you havent selected a complete lemon? Follow our ten-point guide and chances are excellent that you will meet your dream date (in terms of wheels anyway). 1. DECIDE WHAT TYPE OF VEHICLE YOU WANT There are so many di erent kinds of vehicles on the market, and your choice a sedan, hatchback, coupe, 4x4, pickup,

green vehicle, sports car or SUV perhaps will be dened by your motoring requirements. Ultimately, there is no right or wrong choice: the type of vehicle you select is dependent entirely on your individual needs and budget. 2. NEW OR USED? We all dream of buying a brand new set of wheels, complete with that incredible new car smell but in reality used cars o en do o er a good value for money proposition. If you cannot a ord a new car, invest in a low mileage used car instead. But make sure you buy a car with a full service history (a service history is a record of all the mechanical work that has been done to the car). And only buy from a reputable organisation. Resist that unbelievable bargain at all costs; remember if the deal appears too good to be true, it probably is.

Do you want something thats especially versatile, and can be all things to all people?
Maybe a Sport Utility Vehicle (SUV) could be the answer.

Do you want something practical with a boot?

A sedan will work for you.

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Prefer something a little sportier?

Then consider a hatchback or a coupe.

hours
The average length of time that three quarters of car buyers spent online when making a new vehicle purchase in 2008, according to J.D. Power and Associates.

3. EVALUATE THE VALUE ADDS All cars come with extra bits and pieces. Were not talking about dangling dice and u y seats; were referring to value-adds such as service plans and warranties. These can vary signicantly from car to car and, when things go wrong, they can make a huge di erence. A warranty generally covers all the major mechanical items on the car ideally, you want a warranty that is available for as many years and kilometres as possible. The same can be said of a service or maintenance plan you want it to be valid for as long as possible, so that you have peace of mind and know

that you wont have any unexpected motoring expenses that will blow your monthly budget out of the water. 4. GOOGLE IT The Internet is a wonderful source of information on your potential car. Google whatever cars interest you and see what pops up. If that car is unreliable, you will nd loads of motorists complaining about it on consumer sites. You will be able to read reviews by independent motoring journalists too, which could steer you in the right direction (if you will excuse the pun).

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How about something thats dead sexy?

Hello sports car

Fancy the idea of heading o -road?

A 4x4 could be the ideal vehicle for you, or maybe even a pickup (if you fancy the notion of being able to toss stu in the load box).

5. CONSIDER COLOUR Colour is important due to resale values. Cars in popular colours may be easier to sell and boast better resale value. When deciding on colour, also bear in mind that certain colours are more popular in certain markets than others. 6. FUEL CONSUMPTION TO THE FORE Before you sign on the dotted line, you need to investigate the facts and the gures. It costs an arm and a leg to ll a fuel tank so how economical is your potential car? That sports car may accelerate faster than a rocket, but remember that it may gulp down

fuel just as fast. Similarly, a vehicle such as a large saloon or SUV will typically be thirstier than a small hatchback or sedan. Thats because bigger cars are generally a bit heavier, so while they do o er sensational versatility and practicality, there is a price to pay at the fuel pump. There may also be a price to pay in terms of CO2 emissions. 7. SAFETY FEATURES ARE IMPORTANT We have a whole chapter devoted to the vital issue of safety. Decide which safety features are the most important to you and ensure that your new car has these features before you make your purchase.

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Do you really need a bigger engine?

8. PICK A BRAND Now that you have decided what type of vehicle youd like, and whether youre going the new or used route, its time to nail your colours to the brand mast of your choice. This can be a tough one: you may be tempted by the bargain basement pricing options of some lesser known brands or the glamour of an exotic one. Its very important to be sensible in this regard though. Deal with a company with a proud heritage, one that has been around for a while and has an excellent reputation for delivering quality products. Youre making a substantial investment, so only deal with a company

Common errors when buying a car

Rushing into a decision Buying with your heart only Blowing your budget Only considering the purchase price Purchasing a cheap, unknown brand

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that is ethical. Take Ford Motor Company, for instance. It has been recognised as one of the worlds most ethical companies by the Ethisphere Institute, an international business ethics think tank. This is quite some honour; thousands of companies in more than 100 countries and 36 industries were evaluated and Ford was the one and only automaker to receive this honour in 2010.

9. THE TEST DRIVE (AND PAY ATTENTION) Once youve decided on a short list of vehicles, you need to take each one for a test drive. The single most important question you need to ask yourself is this: would I be comfortable and happy in this vehicle each and every day for the next few years? Its a good idea to test drive the car on roads that you will typically drive on once you have purchased a vehicle. If, for instance, you spend most of your time in the city, ensure that your test route includes driving on busy city roads.

A vehicle with great fuel economy could be what youre looking for.

Are you looking to save money?

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Ideally, you want a warranty that is available for as many years and kilometres as possible.
10. FINALLY... PICK A RIDE So you have made your decision. You have decided which car to buy. The last factor you need to take into consideration is the specic model. Cars are generally available in a range models within that range will di er in terms of engine capacity and specication level. Carefully compare the models within the range. Do you really need a bigger (and o en thirstier) engine? Do you need the luxury specication level? Are electric windows really necessary at the back of the car (when you will hardly ever use the back seat)? What safety features are on o er with each specic model? Remember: the bigger the engine and the more luxurious the car, the higher its price tag.

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