There are tons of things to consider when buying a new or used car.
What should I pay for it?
What will I be using it for?
Am I going to the right place to get it?
These are typical questions that people ask themselves and others when they are looking for that next vehicle purchase. This is only the tip of the iceberg, though. There are many more questions people need to be asking themselves and others before buying a vehicle.
Even the best mechanic is not going to know every detail about every single vehicle, even though it may seem like it. They are also not going to be aware of each need that you have for a vehicle, including what you are able to spend and what you want to get out of it.
Here are some of the most important things to consider for a vehicle purchase that you need to start asking yourself.
But… still bring the mechanic along for the ride to fill in the rest of what you don’t know.
How long am I planning to keep it?
This is a great question to ask yourself which will help with long-term planning.
It’s pretty well-known that not every vehicle will last as long as others. Knowing which ones typically last longer will only go to help decide which one might have the lowest ownership costs.
If that is not as important to you as a vehicle you just have to have or brand loyalty, it is important to find out which vehicle might cost less in potential repairs.
What are the true ownership costs?
Continuing on the subject of potential repairs, true ownership costs take into account much more than just necessary repairs.
Insurance costs, fuel costs, depreciation, and intended use all go into calculating the true ownership costs.
A good example of this is buying a BMW. Many BMWs start at a high price point, have higher maintenance costs, have higher depreciation rates, and can be less reliable than many average vehicles. Compare that with a Toyota Highlander at the same initial price point. Highlander depreciation is much less, maintenance costs are much less, and reliability is much higher than the average vehicle.
The difference in fuel economy between a Toyota Highlander and BMW sedan may not be nearly enough to offset the difference in potential ownership costs over five years.
What are my future plans?
Planning for the future is always a smart idea, but that doesn’t mean money always has to be involved. It may be important, but that isn’t always what dictates your life in five, or even ten years.
Will you have a family of four in the next few years?
Will your children be out of college in five years?
These are the questions that will help decide if you will have to get a minivan or three row SUV. Perhaps you are finally free of the children you raised and plan to get a camper, most certainly guaranteeing you will need a truck or SUV with which to haul it.
Perhaps the safest vehicle you can get is a top priority if your son or daughter will be getting their driver’s license soon.
Only you truly know what you need, but what we know is that planning is a must, even apart from the monetary aspect of everything.
Is this the right time to buy a vehicle?
Of course, if your vehicle catches fire on the way to work, you will probably need a new one soon. But, what if you know you will want or need one soon rather than immediately?
Believe it or not, certain times of the year are better times to buy a vehicle, particularly new ones.
July through September, and perhaps through the end of the year, is the best time to buy a vehicle. Manufacturers typically release new model years halfway through the current year.
With that in mind, dealerships are particularly incentivized to get rid of last year’s models to make room for this year’s, especially if one or more models are being completely redesigned.
Massive amounts of incentives are usually offered on leftover vehicles and great bargains are plentiful during this time of year. Keep an eye out.
What about resale value, depreciation, and return on investment?
When a vehicle fills your needs and exceeds your expectations, it’s easy to say that you got a good return on investment. Even though very few vehicles are truly an investment, loving a vehicle that you buy makes it feel like one.
But what about actual monetary value?
We touched on that earlier, but depreciation can really help you out during a vehicle purchase.
Take the Ford Raptor as a good example… Say whatever you want, but the data backs up the fact that it is one of the smartest vehicle purchases anybody can make. It might cost upwards of $60,000, but they retain nearly every bit of their value over a several year period.
They are in high demand, and people want them. Buying a $60,000 truck, then being able to sell it for about the same amount in five years – assuming that you don’t run it into a tree – means that you aren’t losing any money on your purchase – apart from the running costs which come with every vehicle.
That is smart, even if the initial cost is higher than average.
Conversely, buying a new Toyota Camry for $20,000, driving it for 20 years, putting 500,000 miles on it, then selling it for $500 is technically not a good monetary investment. You lose almost 100% of its value, even if you get fantastic use from the vehicle.
Am I willing to spend the money it takes to repair the vehicle if/when it does break?
Even if you know nothing about vehicles and how they work, you might assume that some vehicles are more expensive to repair than others.
It would make sense then that a $50,000 Mercedes Benz is going to be more expensive to fix than a Honda Civic. Likewise, larger vehicles are often more expensive to fix than smaller ones. Additionally, more common vehicles, like the Honda Civic, have a much greater parts availability than some other brands, such as Saab.
Saabs were very nice vehicles, and many of them have lasted a long time. You can still find them today, but you have to ask yourself if you would be willing to pay the price it takes to get the specialized parts they require.
The same can be said of any vehicle you buy.
How can I know I’m getting the best vehicle for me?
This question is one that I can’t answer for you. Everybody has different needs, different wants, and different factors to consider when preparing to make a vehicle purchase. And, it is one area which is crucial to your buying experience.
It’s very much the sum of all the questions we’ve been helping you with this whole time. If you can answer all of the questions above, you should be able to narrow down your next vehicle purchase pretty easily.
Just make sure that you take a little extra time to do some additional research on vehicle you might be considering. There are always going to be some bad things that come with a purchase and the vehicle over time.
You need to make sure you are comfortable with what you’re doing; otherwise, you might just throw a few thousand dollars down the drain.
