Buying a car is one of the most expensive purchases you'll make in your life, and you'll probably make the purchase multiple times throughout your life. It's important to make sure you buy the right car from the right person or dealership, otherwise you'll be stuck with a car that you don't like or one that breaks down constantly.
New Versus Used
Modern cars are built better than older cars and last longer than cars of past, so buying a used car doesn't necessarily mean you're going to need to fix it up every few thousand miles. Still, you're generally going to have to pour more money into repairs for a used car than if you bought a new car, and there's always a risk of running into a large problem, such as a bad engine or transmission. New cars often have a guaranteed warranty and come with better features, technology and safety features, but the downside is they cost more money than used cars. If you don't have a lot of money, then buying used is often the way to go.
Dealership Versus Private Seller
If you're buying a new car, then you have no option but to go to a dealership. If you're buying a used car, you can either visit a dealership or buy from a private seller. You'll almost always get a better deal buying from a private seller, but unless you take the car to a mechanic prior to buying it, you have no idea if the seller is being truthful about the vehicle. While a used car from a dealership will result in a higher price, they often fix any major problems with the vehicle and some dealerships will back the car with a warranty.
Leasing
Leasing a vehicle means that you're essentially renting the vehicle from the dealership for a certain period of time, which is determined when you sign the lease. Leasing usually results in lower monthly payments than buying a car outright, although you generally need more money upfront and you can usually only drive a certain number of miles. After your lease expires, you give the car back to the dealership. If you like to drive new cars every two to three years, want lower monthly payments and don't drive over 15,000 miles a year, then you may want to consider leasing a car.
Buying
Buying a car involves getting a loan from a financial institution for the entire price of the car. After you pay the car off, you own the vehicle and you can keep it as long as you want. The downside of buying a car is that the monthly payments are higher than if you leased the car and you're responsible for the entire price of the car. Conversely, you own the car outright and you can do whatever you want with it. Buying a car is less expensive than leasing a car in the long run, if you plan on keeping the car for longer than the length of the loan.
Type of Car
The most important part of car shopping is deciding what kind of vehicle you want. If you live in a wintry state, then you might want to consider buying an all-wheel drive car or four-wheel drive truck or SUV, although those types of vehicles are usually more expensive than two-wheel drive vehicles. You'll also have to consider how big of a vehicle you need to accommodate your family. SUVs are roomier than cars, but tend to lack the gas mileage that a car can get. Also take a look at hybrid vehicles since they get better gas mileage than gasoline-powered vehicles and are better for the environment.
Insurance
Several factors have an impact on your insurance premium, such as your age and driving record, but the type of car you buy is one of the biggest deciding factors when it comes to determining your insurance premium. Sports cars, hybrid vehicles and expensive vehicles laden with technology and features and tend to cost the most to insure.
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