Buying a car is a big decision, and we recommend looking beyond just the sticker price.
The vehicle you choose can affect your monthly payment, insurance cost, fuel expenses, maintenance, and overall budget.
Before you sign anything, here are seven things we suggest reviewing.
1. Check the Insurance Cost Before You Buy
One of the easiest things to overlook is how much the vehicle may cost to insure.
Two vehicles with similar purchase prices can have very different insurance premiums.
Factors such as the vehicle’s value, repair costs, safety features, theft rates, and performance can all affect what you may pay for coverage.
Before you buy, we recommend getting an insurance estimate for the exact vehicle you’re considering.
That can give you a better idea of your true monthly cost.
2. Look at the Total Monthly Cost
A car payment is only part of what you’ll spend each month.
We suggest adding together:
- Your estimated car payment
- Auto insurance
- Fuel
- Maintenance
- Registration
- Parking or toll costs
- Any other recurring vehicle expenses
A vehicle that looks affordable based on the payment alone may feel very different once everything is added together.
3. Know the Vehicle’s History
If you’re buying used, we recommend learning as much as you can about the vehicle before making a decision.
You may want to review:
- Accident history
- Previous owners
- Maintenance records
- Mileage
- Title history
- Open recalls
We also suggest having the vehicle inspected by a qualified mechanic when possible.
A small issue discovered before you buy can be much easier to deal with than a major repair after the purchase.
4. Compare Financing Options
You don’t always have to accept the first financing option offered.
We recommend comparing your available choices before signing.
Look at:
- Interest rate
- Loan term
- Monthly payment
- Down payment
- Total amount financed
- Total interest paid over the life of the loan
A lower monthly payment can look attractive, but a longer loan term may mean paying significantly more over time.
5. Understand What’s Included in the Price
Before agreeing to the final price, we recommend asking for a full breakdown.
Dealer fees, warranties, add-ons, protection packages, and other extras can increase the total cost quickly.
Ask for the out-the-door price so you can see what you’ll actually be paying.
We also suggest reviewing any optional products carefully before agreeing to them.
6. Think About How Long You Plan to Keep the Vehicle
Your buying decision may look different depending on how long you expect to keep the car.
If you plan to keep it for many years, reliability and maintenance costs may matter more.
If you expect to trade it in sooner, resale value may be more important.
We recommend thinking beyond today’s payment and considering how the vehicle fits your plans over the next several years.
7. Don’t Forget About Coverage Requirements
If you finance or lease a vehicle, the lender may require certain types of insurance coverage.
That can include collision and comprehensive coverage in addition to state-required liability coverage.
We recommend checking those requirements before completing the purchase so you know what coverage you’ll need.
This can also help you estimate your full monthly cost before you commit.
Take a Few Minutes Before You Buy
Buying a vehicle can move quickly once you find one you like, but we recommend slowing down long enough to review the numbers.
Before signing, make sure you understand:
- The total purchase price
- Your financing terms
- Your estimated insurance cost
- The vehicle’s history
- Your monthly ownership expenses
- Any additional fees
- The coverage you may be required to carry
A few extra checks before you buy can help you make a more informed decision and avoid surprises later.
