Car buying checklist

There’s a lot to consider when buying a new car, including cost, reliability and size. You’ll probably have the car for at least a few years, so take time to decide what’s important to you in a vehicle. Good car-buying decisions aren’t made on the fly when you’re about to sign a bill of sale. To make sure you’ve thought through your buying decision, read through this checklist before you talk to a salesperson.

Cost If you’ve ever bought a car from a dealership, you know that the sticker price is not the final price. If you’re buying a new car, you have to consider additional costs such as add-ons and extended warranties. Even a used car comes with additional costs such as taxes, the title fee and a warranty. If you’re taking out a loan to pay for the car, you should also consider what the car will cost once the loan is repaid. With interest taken into account, a vehicle can cost more over time than the price tag may indicate. Have a budget in mind before talking to a salesperson to ensure you’re comfortable with your purchase.

Size The necessary size of your vehicle should be determined by a number of factors. How many people will typically be in the car at a time? Do you have children? Do you live in an area that gets a lot of snow? These and other similar questions can help you pick the right car size and model.

Gas mileage Depending on your driving habits, you may need a fuel-efficient vehicle. There are a lot of options for drivers looking to save money on gas, including hybrids and economy vehicles. Consider how often you drive and what you spend on gas each month to determine whether gas mileage should be a major factor in your car-buying decision.

Resale value Some cars hold their value better than others, so make sure you consider resale value when buying a new car. Much of a car’s worth will be determined by how well it’s maintained, but choosing a highly resalable car goes a long way toward getting back your investment. Consult the Kelley Blue Book to get a sense of how different cars hold their value.

Car insurance Another cost to consider is car insurance. Typically, the more valuable a vehicle is, the more expensive the monthly insurance premium will be. When shopping for affordable car insurance, get quotes on car insurance rates from several providers. Finding inexpensive car insurance shopping is a good way to save money on your new vehicle.