How to Choose a New Car

Buying a new car is an incredible investment and can be rewarding if you know what you're getting yourself into. It's easy to get carried away in the excitement, but there are so many things to consider when buying a new car besides what color paint you'd like and what size engine to choose!

One of the most important things to consider when buying a new car is how fast the car depreciates. If you are spending $20,000 on a car that will be worth $2,500 when it hits 100,000 miles or five years, you are probably going to want to steer clear. A different model that costs the same might be worth $8,000 when it hits the same mark, and presents a better investment in the long-term. Check the short-term depreciation of a vehicle as well by finding the same make and model of car that you are considering that are up for sale by people who may not have been able to afford the payments. Many people have heard the phrase "You lose $2,000 just driving it off the dealer's lot!" and there is a lot of truth to this statement. Make sure that, if something happened financially, you would be able to handle the short-term depreciation.

Safety is incredibly important. There is a vast amount of information on the safety ratings of all cars available. Do not skimp on this part!

Consider the gas mileage that the car gets. The difference between 16 and 22 miles per gallon doesn't seem like a big deal on paper, but it adds up quickly. Check the inside of the fuel door to see if the car can run on regular gasoline or if it requires premium. Premium is usually 20 to 30 cents more per gallon and this adds greatly to the overall cost of the car. Take into consideration the miles you drive per month. Remember that the EPA estimates posted on the window sticker of a car are just estimates and may not reflect what you actually get. Check a consumer-based source such as http://www.fueleconomy.gov/ and compare it against the EPA. Ask the dealership if they offer smaller engines in the same car that get better gas mileage.

Some car companies are well-known for having high-quality long-lasting engines, bodies, and parts. Others are infamous for their cheap cars. Research the company and their reliability extensively before choosing one of their cars. When you see someone who owns a car by that company, ask them how they like their car and if they are satisfied with their purchase. They will usually be glad to tell you the truth, whereas a dealership may be swayed by the chance to earn your money.

When choosing the options for your new car, remember that it is often possible to install after-market parts for much cheaper than the dealer offers. For instance, a factory-installed GPS unit might cost $1,800 but you can find an equal or better replacement and have it installed by an after-market company for $700. You can save thousands of dollars with just a little effort.

Consider how long the make and model of your car has been on the market, and how old the particular body style and engine has been offered. If the model was reworked with a new body style and a new engine in 2006, you might want to wait until 2007 or even 2008 to consider that particular model. Otherwise, you might find yourself in the shop more often than you would like, as it takes a car company a year or two to "iron out the kinks" in new models. It's probably a good idea to stay away from new car companies entirely. If a car company goes out of business, parts and service on those cars become quite costly.

Remember that your car will need regular maintenance and parts will need to be replaced eventually. Some car companies require parts to be special ordered and will take time and extra money to receive. Be sure to have a quick chat with the service and parts department in the dealership to size up the cost of normal maintenance (such as oil changes and mileage maintenance) and parts that need regular replacement (such as filters, timing belts, and glow/spark plugs).

When you do choose a make and model of car you would like to purchase, choose your dealership before purchasing the car. You will be seeing them for any problems you will have for you new car and you want to have a good relationship with them. Remember that the dealership can ship in or order any car just as any other dealership can, so don't feel rushed into buying that "perfect car" if you are not comfortable with your dealership.

Last but not least, enjoy your new car. You will feel secure in the fact that you have done your research and you can enjoy your new investment with peace of mind!