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When my daughter needed a car for college, I knew my old car would be perfect. That meant I had to find a replacement for myself. I knew what I wanted—convertible, turbo and some toys. I knew my budget wouldn’t allow for a new one, so I found the right car in the used car market.
When choosing the right car for you, consider more than just the options available. Think about how that car will fit into your life and your financial picture. If your wish list puts a new car out of your reach, consider the many options available in the used car market.
When deciding what you want in your next car, here are some considerations:
Budget: The first thing to consider is how much you’re willing or able to spend on your next car. If you’re dying for a red sports car but you have just $15,000 to spend, you’ll probably be shopping in the used car market. Keep your expectations realistic. Go to sites like Edmunds.com to find new and used car prices and features lists.
Amenities: List your musts and maybes. Musts are things like air conditioning, power steering, automatic or manual transmission, and anti-lock brakes. Maybes are more like sunroofs, leather seats, alloy wheels, etc. What do you have to have? What can you do without? For me, a car with a CD player and iPod connection is a must, but I don’t necessarily need a six-CD changer.
Lifestyle: You really want that two-seater convertible, but is it realistic when you’re newly married and have a baby on the way? Also, two-door coupes are great unless you have children climbing in and out of the back seat. Consider how the car will be used and what has to be there to make everyone in the car most comfortable.
Power: This is also a lifestyle consideration. If you are using your car to commute or to run errands, a 4-cylinder engine may be quite enough. However, if you’re into motor sports or haul any trailers, make sure to purchase a car whose engine can handle the extra weight load.
Insurance costs: Probably the most overlooked costs associated with a newer car are the insurance costs. Before signing any sales agreement, check with your auto insurer to get an insurance rate. The price could be a minimal change or a huge difference, depending on several factors, including the car’s safety rating and crash test results.
Fuel economy: I almost didn’t list this because cars have become quite fuel efficient. However, if you’re used to driving a Prius and you switch to a Land Rover, you’re going to be shocked the first time you fill up. Make sure the miles-per-gallon rating on the car you’re considering is in line with what you intend to spend on fuel.
Resale: Yes, consider now what your car’s future resale value might be. Unless you intend to keep your car for a decade or more, you want to purchase a car brand that has a history of holding its value.
Consider carefully both the options you want in a car and how that car will fit into your lifestyle and your budget. By choosing your next car wisely now, you could be saving yourself both money and regret.
Photo credit: morgueFile