When most of us were teenagers, we just could not wait until we got old enough to finally get our first ride. At that time in our lives we were totally oblivious to all the cost associated with owning an automobile. However, as we got older and wiser, we came to realize that the purchase price of a car is just one calculation that we need to take into consideration when we attempt to decide which one to obtain.
When you first sit down and start trying to figure which car will be the most cost efficient to own and operate, you want to make sure you are comparing apples to apples. To accomplish this you will want to sort out all of your possibilities by price range and style.
In other words, just because a two door convertible and a four door family car sell for approximately the same price, that does not mean you should compare the two. Now that we understand that, let’s get on to how you go about this process.
First, of course the price that it is going to cost you to get it home would be the obvious place to start. If you plan on paying cash for the car, this is very easy to do. But, if you are going to use a financing plan of some kind, those are the figures that you should concentrate on. Just because one car sales price is more than another one, does not mean that it actually cost more.
If you use dealer financing, you will need to compare your down payment, any extra fees that they require, and your monthly payments to come up with the figure that you need for your final evaluation of your actual purchase price.
Second, although two cars look very similar, there can often be large differences in the yearly cost of insurance for them. This can happen for many reasons, such as one being stolen more often than its counterpart. It could be because one is more expensive to repair damage to its body, or because one car is in more accidents. Whatever the reason before you make your final decision, get a few quotes for the insurance on the cars that you are considering.
Third, are your operating cost, which include your gas, regular maintenance, and the cost to repair something when the car breaks down after the warranty has expired. The first thing you want to do is to see how long the warranty is, and determine exactly what it covers.
Next, you need to compare the gas millage each car will get based on the type of driving you will do the vast majority of the time. Finally, you need to research and compare the typical repair bills for each car that your are considering.
If you follow all of the above recommendations, there is an excellent chance that you will be able to get a new car that you will be extremely happy with, while at the same time saving a great deal of money in the process. It does not take too much time and effort to do everything you need to do. So, the next time you purchase a car, be sure to use the smart money saving approach mentioned above.