Car Shopping

Costs of Owning a Car Depreciation Interest on loan Insurance Registration fees, license, taxes Gas Oil/fluids Tires Maintenance and repairs Parking/Tolls

Before you Begin Shopping Decide which car model and specific options you want Find out the invoice price Make your offer to as many dealers as possible Compare final prices and buying services Research insurance prices Research loan rates you can get

Before you Begin Shopping If you have a trade-in find out the value yourself Try to sell your old car yourself Decide whether you want/need optional service contracts beforehand Bargain from the price of the car and NOT the monthly payment Figure out the max you can spend for the car What type of warranty comes with the car

Leasing Vs Buying

Leasing Advantages Lower monthly payments Shorter Terms – this is great if you like new cars often or you are afraid of the long term commitment of buying GAP Insurance – Guaranteed Auto Insurance, or GAP, provides protection if your leased vehicle is damaged or stolen during the time of your lease. Lower Sales Tax- You can pay the sales tax of the car over a period of time Tax Write-off If used for business, leases are typically a tax write-off Investment potential - you can invest the money you are saving

Leasing Disadvantages Mileage Restrictions - usually leases come with mileage limits around 12,000. If you go over these limits, the price is high – around $0.15 per mile You don’t own anything – buying a car costs more, but it also builds equity. Good credit requirement Harder to End -Leases are harder to terminate if you need to get of them. Upkeep -You have to keep the car well maintained or you could get charged at the end of a lease

Buying Advantages No mileage restrictions You own the car Your credit is not as big of an issue You can maintain the car to your standards You can customize the car any way you want You can sell the car yourself anytime

Buying Disadvantages Higher monthly payments usually, but not always You are responsible for repairs after the warranty ends Term may be longer You have to pay sales tax at the time of purchase