Quick Tips
New Cars
- You can save thousands of dollars over the lifetime of a car by
selecting a model that combines a low purchase price with low financing, insurance,
gasoline, maintenance, and repair costs. Ask your local librarian for new car guides that
contain this information.
- Having selected a model, you can save hundreds of dollars by
comparison shopping. Call at least five dealers for price quotes and let each know that
you are calling others.
- Remember there is no "cooling off" period on new car
sales. Once you have signed a contract, you are obligated to buy the car.
Used Cars
- Before buying any used car:
- Compare the seller's asking price with the average retail price in
a "bluebook" or other guide to car prices found at many libraries, banks, and
credit unions.
- Have a mechanic you trust check the car, especially if the car is
sold "as is."
- Consider purchasing a used car from an individual you know and
trust. They are more likely than other sellers to charge a lower price and point out any
problems with the car.
Auto Leasing
- Don't decide to lease a car just because the payments are lower
than on a traditional auto loan. The leasing payments may be lower because you don't own
the car at the end of the lease.
- Leasing a car is very complicated. When shopping, consider the
price of the car (known as the capitalized cost), your trade-in allowance, any down
payment, monthly payments, various fees (excess mileage, excess "wear and tear,"
end-of- lease), and the cost of buying the car at the end of the lease.
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