A graduate’s guide to buying a car Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by offering interactive tools and financial calculators as well as publishing high-quality and impartial content. This allows you to conduct research and compare information for free to help you make informed financial decisions. Bankrate has partnerships with issuers, including but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The offers that appear on this site are from companies that pay us. This compensation can affect the way and when products are featured on the site, such as the order in which they appear in the listing categories in the event that they are not permitted by law. Our mortgage, home equity, and other products for home loans. This compensation, however, does have no impact on the content we publish or the reviews appear on this website. We do not cover the universe of companies or financial offers that may be accessible to you. Kali9/Getty Image
4 minutes read. Published September 16, 2022
Written by Allison Martin Allison Martin Written by Allison Martin’s career began more than 10 years ago as a digital media strategist, and she’s since been featured in a variety of top financial outlets, including The Wall Street Journal, MSN Money, MoneyTalksNews , Investopedia, Experian and Credit.com. Written by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate from late 2021. They are dedicated to helping their readers feel confident to manage their finances through providing precise, well-researched, and well-sourced information that breaks down complex topics into manageable bites. The Bankrate guarantee
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So, this compensation can affect the way, location and in what order the products are listed within categories, with the exception of those it is prohibited by law regarding our mortgages, home equity and other products for home loans. Other factors, like our own rules for our website and whether or not a product is available within your region or within your personal credit score may also influence how and where products appear on this website. While we strive to provide an array of offers, Bankrate does not include information about each financial or credit item or service. You’ll be walking across the stage soon to receive your diploma and now it’s time to go out into the world. Buying a car may be a part of your plan if you plan to live in an area where public transportation isn’t the most effective method to travel. Before you go to the dealership to choose the ideal vehicle, conduct your own research and be preapproved for the purchase so that you shop with confidence. Pick the right car for your needs post-graduation. prospect of owning your own vehicle is thrilling. However, you must avoid being distracted, or you may choose a car that fits your style but isn’t practical. The commute How long will your commute to and from work? If your commute is long, you may want to narrow your search down to cars with high fuel economy ratings — especially with how prices for gas are changing. It’s currently around $3.70 to the gallon in regular gasoline according to AAA which is slightly lower than last month’s median of $3.96. Still, this figure is much higher than the median price for a gallon that was $3.18 just one year ago. Go to the website and use their online tool to view the average annual cost of fuel for the vehicles you are contemplating. You can narrow your search down by year, make and model, and then view suggestions for the most efficient vehicles. Size and add-ons Will a compact car suffice for you, or do you require something more substantial, like a crossover or pickup truck? What are the best features? are certain ones “must-have” on your list? If you recently landed a job with a good salary that you will start following graduation, you might have access to the most recent technology and features. However, you might prefer an affordable car the hassles until you get started and get more established in your job. Safety features How safe is the car you’re thinking of buying? Request a copy of the car’s . It includes maintenance records and provides information on whether the car has been involved in any accidents. Another good source is the website. You can search safety ratings and search for recalls by entering the vehicle’s make and model, or VIN. Decide between new and used There’s a lot to love about a new car. It’s shiny, in top shape and smells good. However, there are some that are as solid as the others. You can also buy an extended warranty for around $1,500 and have added peace of mind knowing you’re covered in the scenario the worst happens and you experience a mechanical failure. Take note of the following when making a decision between a used and new car: New cars have a manufacturer’s warranty. This coverage could save you lots of cash if your vehicle is damaged and needs major repairs within the first few years of ownership. New cars often have all the latest technology. But, it is possible to get a used vehicle with the features you want. Some used cars can be low-mileage. So, you shouldn’t have numerous mechanical issues over time, maintenance costs will likely be lower and you’ll receive a better deal. Some used cars are . These are given the seal of approval from the manufacturer after being brought up to a certain standard mechanically , and come with a limited factory warranty. Consider the total price of owning a car. In addition to the monthly payment, fuel costs and insurance premiums for autos and also take into repair and maintenance costs. In 2021 the average cost of maintenance, repairs and tires was 9.55 cents per mile according to . However, the costs differ according to the vehicle you own however, you can use the to get an idea of how much you may pay over the course of. The annual registration renewal costs, which generally vary from less than $20 to around $200 per year, are an additional factor to keep in mind. Certain states charge fees in a lump sum for registration, while other states use the vehicle’s age, energy efficiency, or weight in calculating fees for registration. Explore cars and apply for financing prior to visiting a dealer. Many dealerships provide in-house financing however, it’s better to get it before you start shopping for an automobile. It is important to have a concrete idea of the amount you’re able to afford, and quotes from your bank or credit union can help you determine a purchase price that works. There’s also more leverage when . The sale won’t be contingent upon your ability to secure financing from the dealer, and you’ll behave like a cash buyer. Learn the advantages of buying as opposed to. leasing. There’s a lot of debate about what is the best option. Here are some benefits of both options to consider The lease payment on the latest automobiles are usually more affordable. If you have your sights set on a certain car which is expensive and you’re not sure if you’ll be able to afford the monthly payments if you get a lease. There’s a manufacturer’s warranty in the event that you purchase a brand new car. It typically covers you until 36,000 miles, or three years, which means you won’t have to worry about spending thousands of dollars on repairs when a mechanical issue comes up. There are no mileage restrictions when you purchase a car. If you opt to lease the car, you’ll be restricted to between 10,000 and 15,000 miles per year or be at risk of accruing excessive mileage fees. They can cost you between 10 cents to 25 cents per mile, or more, according to the conditions that the contract for lease. The car will be yours once the loan is fully paid. Lease agreements work a little differently, though. You’ll need to return the vehicle to the dealer when the lease expires unless you decide to . In the end, purchasing cars at college is one of the largest purchases you’ll make. To ensure you get the best price it is important to conduct your homework to find the right vehicle that fits your lifestyle and budget. It’s equally important to obtain pre-approval to finance your purchase prior to visiting any dealership. You should also consider the advantages of purchasing or leasing to determine which is the best option. Find out more
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Allison Martin’s work began over 10 years ago as a digital content strategist, and since then she’s been published in several leading financial outlets, including The Wall Street Journal, MSN Money, MoneyTalksNews , Investopedia, Experian and Credit.com. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since the end of 2021. They are dedicated to helping readers gain confidence to take control of their finances by providing precise, well-studied facts that break down complex topics into manageable bites.
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