There are many options to consider when buying a car. Because of the rise in oil prices, the auto companies have come out with well-made small cars, so that there are more choices than ever before.
- If you don’t have a large family, a new small car may cost you less in the long run than a used car. Interest rates on loans for used cars are generally higher than those for new automobiles. In addition, there is more demand for used cars now, particularly since many were disposed of in the Cash for Clunkers program. This has resulted in higher prices.
- Determine how much your car insurance will be. The rates on new cars tend to be higher.
- Compare the gas mileage predictions. Newer cars tend to get better mileage, which will save you money on gas.
- Car maintenance must also be considered when buying a car. If you can do repairs yourself, you can save a lot of money and perhaps be able to buy an older car.
- Check with several banks and credit unions for their best interest rates before you buy. Often, you can become a member of a credit union by opening an account with a deposit as low as $5.00.
- Keep an eye out for dealer incentives. You can find these by going on the automakers’ websites. They can also be found at www.edmunds.com. or www.kbb.com (Kelley Blue Book)
- Edmunds and Kelley Blue Book are also good places to start when researching various cars. At these sites, you can find dealer invoice prices, used car repair histories, recommended cars, and all kinds of other valuable information.
- If you are a recent college grad or in the military, ask the dealer if they have any special discounts.