Private seller

Learning Sequence

Activity 1: Sophie's ideal car (Commerce)

Sophie had talked to Nik about his car buying problems. She tried to get all the information she could before buying a car. She checked out the Money Stuff  website to read the car buying tips, she talked to friends and she shopped around.

Finally, Sophie found her ideal car in the local paper. She went to the house of the private seller with her brother and he had a look over it with the inspection checklist (printed off the Money Stuff website). He also organised an inspection by a qualified mechanic. The next step was to apply for a loan to buy the car. Sophie decided to apply for a loan with her Credit Union. Answer the questions below to find out what Sophie needs to know about credit contracts and buying a car privately.

Use the car and loans section of this website and the National Consumer Credit Code Website (www.creditcode.gov.au) to find the answers.

2. ANSWER the following questions:

Car Loans
a. What should Sophie do before she decides to take out a loan with her Credit Union?

b. If she does decide to take out the loan, what should she get before signing the credit contract? (Hint: check out Just the Facts - Credit )

c. The loan manager from the credit union has asked Sophie to provide some type of security before they will approve the loan. What must Sophie commit to if she decides to put the car up as security?

d. Sophie has decided to buy the car and will take out comprehensive insurance. What is comprehensive insurance?

e. What are the disadvantages if Sophie adds the car insurance to the loan?

f. What will happen if Sophie loses her job and can't make the repayments?

Buying a car privately
a. What do you need to check before you take a car for a test drive?

b. What paperwork do you need to see and check before you buy a car from a private seller?

c. How much does transfering the registration cost?

d. What are the ongoing costs of buying a car?

Now you know some of the pitfalls involved in taking out a car loan and buying a car from a private seller, you may want to take your chances with the Money Stuff Car Challenge .

This activity can be found in the NSW Money Stuff Teacher resource book – Commerce page 37.

Explore additional learning activities (which include extension and revision tasks) in the print resources section under Print resources - Victoria.

Linked Learning Outcomes - NSW
Core Part 1.2 Personal Finance
Focus: Students develop knowledge, understanding and skills that assist them to achieve financial independence by developing the ability to make informed judgements and to take effective decisions regarding the use and management of money.
Students learn about: Borrowing money.
Outcome LS.9:
Students learn about: Exercising care when accessing financial services.

Learning Outcomes – Victoria
Victorian Essential Learning Standards (VELS) Discipline-based learning
Domain: The Humanities - Economics
Dimension: Economic knowledge and understanding
Level 5
Students explain the nature of the economic problem and how economic choices involve trade-offs that have both immediate and future consequences.
Students make informed economic and consumer decisions, demonstrating the development of personal financial literacy.
Level 6
Students discuss and explain what it means to be an ethical consumer and producer and identify examples of ways values can affect the economic decision making of consumers, producers and governments.
Students explain the role and significance of savings and investments for individuals and for the economy, and demonstrate the skills required to successfully plan and manage personal finances.

Learning Outcomes - Western Australia
(Society & Environment)
ICP 5.2 Selects from a range of appropriate data sources and methods of recording that enhance the specific purposes of investigation.
R 5.1 Understands that people's ability to make efficient use of resources is affected by their access to, and ownership of, various resources.