1, 2, 3 Deciding What Vehicle You Can Afford
1. Check reliability
New vehicle will come with a warranty for typically the first three years or 36,000 miles. Go to consumerreports.com to compare vehicles. To get full access to reports you will have to subscribe. You can purchase a one-month membership for as low as $5.95.
2. Look at continuing costs
Think about all the costs in owning a vehicle: potential repair costs, maintenance, and gasoline. You can compare vehicles on edmunds.com with a feature called "True Cost to Own". Comparing vehicles will show you what the five-year cost on a vehicle is, not just the purchase price.
3. Negotiate hard
One sure way to cut overall costs is to reduce your purchase price. On new vehicles, look for the dealer costs or the "invoice price" and negotiate from there. Aim for a selling price at 2% above the invoice before any rebates are given. Very popular models may be an exception to this rule and will sell closer to manufacturer's suggested retail price.
What About all the Extended Warranties?
Don't be Fooled by 0% Financing - Take the Rebate!
