SIFE Financial Corner

U-News Staff

Car buying advice

There are many different options when buying a car, such as buying new, used, or leasing. Here are more helpful hints to make buying a car a smooth experience.

  • Most importantly, determine a budget and stick to it. That red sports car may seem like a good purchase, but will it retain its value in five years?
  • Fox Business advises to budget no more than 20 percent of one’s household budget to be spent on all costs incurred with vehicle ownership.
  • Don’t make assumptions about buying new or used.
  • Sometimes rebates or financing incentives will make the total cost of owning and maintaining a new car less than the used version.
  • Pay close attention to warranties, which can save thousands in future repairs.
  • Pick a vehicle model, such as sedan, SUV or truck and research all options available in that class, new and used.
  • Consider a brand’s reputation for dependability, and carefully consider comparable models of a different make.
  • Don’t let familiarity with one brand influence the decision.
  • Research the true cost of owning the model that suit your needs.
  • Edmunds.com has a helpful tool called ‘Cost to Own’ that factors in depreciation, taxes, insurance, maintenance, gas and repairs. Edmunds also has a payment calculator that is helpful to stay within a budget.

The SIFE Financial Corner is created by members of UMKC Students in Free Enterprise.

For more information, find us on Facebook and Twitter, or attend our weekly 7 p.m. Tuesday meetings in the Brookside Room of the Administrative Center.