Things to Consider when Purchasing Your First Car

Buying your first car is a major expense. If you are thinking that the only expense you will have is making a monthly payment, think again. Did you realize that
you will need to pay for insurance, gas, repairs, and maintenance? Well, if you haven't thought of these things, they will be a reality when you become a car owner.

There are advantages and disadvantages of buying a new vs a used car. If you buy a new car, you will not have to worry about repairs until after your warranty expires, but you will still need to pay for oil changes (once every 3,000 miles), tune ups, fluid changes (transmission, differential), and other maintenance items. You can also save money by purchasing a used car, although you won't have the peace of mind that comes with a new car. Used cars also come with risks, since it is difficult to predict when you are going to have to pay for an unexpected repair.

You can usually save some money on gas and insurance if you purchase a small to mid sized economy car, rather than an expensive SUV or sports car, not to mention saving money on the sticker price.

Make sure to do some comparison shopping. Things to look at include gas mileage, overall reliability, and vehicle safety. Go to your local book store or search the internet for consumer ratings on the kinds of cars you are looking at.

After you have found a car you like, make sure to call your insurance company. Not only can your insurance company tell you how much it will cost to insure the car, they can also tell you how the car you are interested in performed in crash tests compared to other cars of the same class. When examining crash test data, make sure to also look at death rates, since this can give you a better picture of the overall safety of the vehicle.

Finally, make sure that you are aware of what the tax and registration fees will be. These will vary from state to state, but a good number to work with is between 5 and 10 percent of the purchase price of the car you choose. For example, if your car costs $10,000, expect to pay at least $500 to $1,000 in tax and registration fees. If you are not sure how much these costs will be, just call your local vehicle registration office, and they should be able to give you an estimate.