I bet many of you are considering trading in your older gas-guzzling car with these rising gas prices. If so, you will want to consider many financial implications of a vehicle and not simply the purchase price.
A car is a purchase that will keep costing you money. Therefore, you can’t just compare automobiles based only their purchase price alone. When deciding which make and model of car to buy… remember to evaluate the following:
1. Sales Tax – Yes, in most states you will have to pay a tax on your vehicle purchase. You will also have to pay registration fees. In some states, these are combined into special additional fees and taxes. If you haven’t bought a car in awhile, it is good to become familiar with your state’s taxes and fees – so you can adequately budget for them.
2. Insurance – Before you select a specific type of car, call your insurance company to get the quotes on similar models. The actual cost of insurance can vary greatly on the year, make and model of the car you select.
3. Depreciation – A new car drops dramatically in value as soon as you drive it off the lot. Most experts recommend buying a used car that is just a year or two old. You still get the newer vehicle, but you aren’t paying for the new car price.
4. Fuel – Of course, in this gas market, you have to consider fuel costs. The price of gas has jumped in the past couple of months and there is no sign of it going down anytime soon.
5. Maintenance – Look closely at the repair history for the specific car you want to buy. You should also compare warranties if you are buying a car from a dealer.
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