Problems When Buying a Car

Buying a car can be an act of necessity or a symbol of freedom. Whatever your situation, buying a car is likely complicated by a number of factors that can all have very real impacts on how much you pay, how safe you are and whether you end up regretting your decision.

Cost

Cost is one of the biggest problems that buying a car involves. Other than the car's cost, you need to add in the cost of fuel, maintenance, registration and inspections. There's also the decision of whether to pay cash, finance or lease. A lease allows you to have a new car every few years for less than the price of buying, but you never build up equity, and the cost to buy your vehicle once the lease ends is usually more than it's worth. Financing means your cost will depend upon the size of your down payment, the price you negotiate and the interest rate a lender offers. Dealership promotions and manufacturer rebates all play into the car buying process and can serve as tools to get the best deal possible.

Choosing a Car

Selecting an appropriate car for your needs is another problem. Your budget may limit you to a certain type of car, such as a used car of a certain age. Even so, you'll need to select between styles such as trucks, SUVs, compact cars, sedans and sports cars. If you have a family, the car's safety rating is likely a top priority. Reliability ratings, the likelihood of theft and the presence of convenience features all play into your ultimate decision. If you can't find a car that meets your expectations, you can either wait or compromise in one or more areas, which means you need a sense of what is most important in a car.

The Environment

With many alternative fuel vehicles on the market, both as new and used models, car buyers at all price points can take the environment into consideration. Choosing a car with a good environmental record complicates the decision-making process, but it can also mean lower fuel costs while you own the car and a higher resale value in the future. Even among cars with conventional engines, technologies such as displacement-on-demand and advanced aerodynamics give some vehicles a much higher efficiency rating than others in the same class. The Environmental Protection Agency and independent automotive publications list environmental records for buyers to use in their research.

Insurance

Every state makes it a law for drivers to have some form of car insurance or financial protection. You may be able to purchase temporary insurance to drive home from the dealership, but part of the car buying process is getting an insurance package you can afford that offers adequate coverage. With a new vehicle, optional coverages such as collision and comprehensive are especially important, and may be required if you finance your car. Buying insurance at your state's minimum levels or with a high deductible will save you money, but might not cover you in full if you cause an accident. Compare rates from different companies and look into discounts that an insurance company offers to find the best coverage for the best price.