Factors to Consider When Buying a Car (2024)

FAQs

What to consider when choosing a car? ›

Shopping for a car can be exciting and overwhelming at the same time because there are multiple factors that go into deciding which vehicle to purchase. Outside of price, other factors include quality, reliability, and cost of ownership.

Put more down up front

The 20/4/10 rule recommends putting at least 20% down on a vehicle. You can always consider a higher down payment — especially if your credit isn't stellar. The more you pay up front, the less you'll need to cover with a loan and the less you're going to pay monthly.

Lexus ranks highest overall in vehicle dependability for a second consecutive year, with a score of 135 PP100. Among premium brands, Porsche (175 PP100) ranks second and BMW (190 PP100) ranks third. Toyota ranks highest in the mass market segment, with a score of 147 PP100.

The best time to buy a car is usually around the end of the year since salespeople will be trying to meet their quotas and may offer steep discounts. However, you should also consider holidays — like Labor Day or Memorial Day — and the beginning of the week.

Looking up a vehicle's safety rating, recalls, and full history report is a good place to start. In addition to online research, you should have a checklist of features you want in a used car and a mechanic lined up who can fully inspect the vehicle before purchasing.

Credit Score

It's a reference for institutions looking to give out loans and helps to determine how much money they will be willing to lend and what conditions the loans come with, such as rate of interest and monthly payment.

What are three steps that you should take before purchasing a vehicle? ›

Often, 100,000 miles is considered a cut-off point for used cars because older vehicles often start requiring more expensive and frequent maintenance when mileage exceeds 100,000.

As independent franchises, dealers can sell the car at any price. Some dealerships and brands have developed no-haggle pricing. The price on the window is the price of the car, they say. In most cases, you'll still need to negotiate the value of your trade, the cost of financing and the price of any add-ons.

It's important to consider not only the size and performance of vehicles you're considering, but also their fuel economy, safety ratings, and cost to insure. Today, you also need to think about what powers your pre-owned car, with more and more electric cars entering the used car marketplace.

Before going to the dealership:

Consider the overall cost of ownership, including gas mileage, maintenance and repairs, insurance costs, and depreciation. Check consumer publications, the Internet, and car magazines for information on models and prices. Read the California Car Buyers' Bill of Rights.