Editor's note
Printed copy is in English and Spanish.
Learning for Better Living: Smart Car Buying
Brenda J. Procter
Department of Consumer and Family Economics
Buying a car takes time and work. It helps to know what kind of car you need or want and how much you can spend.
First you need to decide
- Size and kind of car you need.
- How you plan to use the car.
- The options you want.
- The price you can pay.
Remember
If the price of the car is high, the expenses associated with it are higher, such as insurance and repairs.
Do some homework before borrowing money
- Find the best deal: Bank? Credit Union? Dealer?
- Dealer loans are usually more costly.
- Compare total cost:
- Interest rate
- Length of loan
- Any other cost
- Contract terms
Read the contract carefully. Understand all the terms of the loan before you sign it.
Shop around
- Decide if you want to buy a new or used car.
- Compare prices and models.
- Look for consumer magazines on autos or the Kelly Blue Book at the library.
- Talk to your mechanic, friends and relatives.
- Call car buying services.
- Be ready to negotiate the price.
- Keep the deal simple.
- Negotiate the lowest total price, NOT the lowest monthly payment.
Note
Look for the best car loan. Have your own loan or credit
approved before you go to buy a car. This way you will be sure to get the best
deal
MP724, new September 1995
