Last Updated on February 5, 2024 by John Robinson
Deciding to purchase a car, whether used or brand new, is a big financial commitment. The cost of owning a car goes beyond the upfront price that is paid. It also includes maintenance costs as well as fuel expenses (for most vehicles). In fact, it has been shown that transportation accounts for about 16% of the average American’s total budget. This makes transportation only second to housing in household expenditure. Seeing as buying a car is such a major decision, it is undoubtedly critical to get it right. If you are planning to buy a car here are some considerations for buying a car in 2022:
1. Financing
Regardless of the price of the car you’re considering, financing is always a top consideration. This is because paying for a vehicle outright, though the cheapest option over time, is not practical for most people. The alternative, then, is to look for other financing methods, such as loans.
Unlike leasing, getting a loan to purchase a car does not come with restrictions such as an annual mileage limit, wear and tear penalties, and early termination penalties. It is, however, essential to review your auto loan options to ensure you get the best value.
2. Carbon Footprint
As climate change concerns continue to take center stage in the world, it is increasingly likely that inefficient gas-powered vehicles will face more restrictions in the future. Similarly, as was witnessed this year, gas prices could increase dramatically, further raising your car expenses.
Given these factors, efficiency should be a top consideration when selecting a car. This could mean buying fully electric cars, which are rapidly becoming cheaper. You could also buy a car that is incredibly fuel-efficient to reduce your exposure to the volatility of fuel prices.
3. Lifestyle
It is important to evaluate your lifestyle and needs in order to choose the best type of car for you. For instance, it makes no sense to go for a 2-seater like a Ford Mustang or a Porsche 911 Turbo S, when you really need a family vehicle. In such a scenario, it is, no doubt, more appropriate to purchase one of the bigger SUVs on the market.
Other lifestyle factors include towing and off-road needs, traveling frequency, and work needs. Your ideal vehicle could range from a pick-up truck to a small convertible, depending on your lifestyle.
4. Warranty
When buying a brand-new car, the accompanying warranty is a significant factor to consider. Needless to say, a robust car warranty is a source of peace of mind. Warranties are also a reflection of the manufacturer’s confidence in the reliability of their vehicles.
One key area of your car warranty to pay attention to is the length. Warranties that last longer or cover a higher mileage are generally considered better. It is also crucial to look at what items are covered by your car warranty. The best warranties should provide comprehensive coverage for your car’s engine and transmission. Other factors to consider include associated out-of-pocket costs and the transferability of your warranty.
5. Insurance
When purchasing a car, it is also essential to pay attention to auto insurance. For one, liability coverage is a legal requirement. However, apart from simply complying with the law, auto insurance offers several benefits, such as protecting your vehicle, potentially reducing expenses, and providing peace of mind.
Notably, much effort goes into picking the right auto insurance for you. To help with this process, you can check out full coverage insurance explained to further understand the different kinds of auto insurance coverage and how to get the most out of your insurance package.
