What You Need To Know Before You Buy a Car

We buy cars and sometimes beyond our means and don't really understand the true cost of ownership. Cars are one of the biggest money pits out there and other than providing us transportation from point A to B have no other purpose. I'm not here to tell you you should not buy an expensive car or tell you to buy a used cheap car that will do the same exact thing. Instead I am writing this for all those college students who recently graduated college or will be starting at their new job really soon. I was once a college student and when I started my new job I wished I had someone tell me the true cost of ownership before I bought the car than learning on my own.

Things I should have researched or someone should have told me:

First off depending on your yearly salary consider spending at the max half the amount on your new car (it can be used). I recommend this because lets say you make $31,000 yearly buying a 20,000 car may turn out to be expensive. Why it can be expensive? Well payroll taxes will eat a third of your paycheck, then you have to survive so living expenses (gas, electric, rent) if any, car expenses like fuel costs, car maintenance costs and last but not least car insurance are all those factors I certainly did not think about when I bought my first car.

Things I would recommend you do before you buy your car:

1. First off, if you are taking a loan out? what is the best rate you can get? check with banks, credit unions or if the car maker has their own financing then check their rates as well.
   
2. Research how much the tires will cost to replace. Some cars require special tires and there is no cheap alternative.
3. Does the car take regular or synthetic oil? Unless you know how to change your oil every time an oil change is due this can quickly add up. Better yet learn how to change your oil.
   
4. Find out the estimate cost for every 10,000 mile check ups the manual recommends. If you take your car to the dealership this will be expensive and will put a hole in your pocket.
   
5. If you know someone who owns the car/truck ask them how much do they pay for registration fees. Each state is different so make sure to check with your DMV as well.
6. Does your car take 87 octane or 91 octane? Putting premium gas in your car can also hurt your wallet especially in this day and age. Lets hope the car gets excellent MPGs.
   
7. Insurance costs, this is a must call the insurance company instead of getting a quote online. The quotes are not accurate in my opinion. You don't want to end up spending $300+ on car insurance.

I have been in these situations before and I hope if you are reading this that you don't fall for the traps laid out by car salesmen and insurance companies out there. Make wise decision rather than a expensive one. I would recommend you visit Edmunds.com and check out their True Cost to Own Calculator. It definitely opened my eyes on how expensive owning a car can be. Feel free to leave your comments and suggestions.