Car buying advice
There are many different options when buying a car, such as buying new, used, or leasing. Here are more helpful hints to make buying a car a smooth experience.
- Most importantly, determine a budget and stick to it. That red sports car may seem like a good purchase, but will it retain its value in five years?
- Fox Business advises to budget no more than 20 percent of one’s household budget to be spent on all costs incurred with vehicle ownership.
- Don’t make assumptions about buying new or used.
- Sometimes rebates or financing incentives will make the total cost of owning and maintaining a new car less than the used version.
- Pay close attention to warranties, which can save thousands in future repairs.
- Pick a vehicle model, such as sedan, SUV or truck and research all options available in that class, new and used.
- Consider a brand’s reputation for dependability, and carefully consider comparable models of a different make.
- Don’t let familiarity with one brand influence the decision.
- Research the true cost of owning the model that suit your needs.
- Edmunds.com has a helpful tool called ‘Cost to Own’ that factors in depreciation, taxes, insurance, maintenance, gas and repairs. Edmunds also has a payment calculator that is helpful to stay within a budget.
The SIFE Financial Corner is created by members of UMKC Students in Free Enterprise.
For more information, find us on Facebook and Twitter, or attend our weekly 7 p.m. Tuesday meetings in the Brookside Room of the Administrative Center.