by Emily Hechler 
When shopping for a car, there are many factors to consider. Should you buy a new or used car? Do you need front-wheel drive or all-wheel drive? Should you buy electric or gas? Let’s walk through some essential car basics and then dig into other nicer but realistic options. While finding a car can take time, these tips can help you make the best decision, so you’ll know you found the perfect one for you.
Before you even start thinking through these essentials, keep in mind that a car is an investment in your current self but also in your future self. It’s important to consider your needs now and estimate what your needs might be a few years down the road. Auto loans typically range from 36 months – 84 months. You don’t want to find yourself needing to purchase a different car while you’re still paying off your first one.
First, consider the size of a car that you need. If you’re a teen looking for a car to drive to school and day trips with friends, a sedan is a great option. This size car would also serve you well in the near future when you attend college or start working full-time. If you want to start a family in the next couple of years or you already have kids, a larger vehicle like an SUV or minivan could be for you.
Next, consider the environment that you live in. Those who live in the Greater St. Louis area can confidently rely on a front-wheel drive. Since the area is pretty flat and we don’t get a lot of snow each winter, our vehicles don’t need the power of an all-wheel drive. However, if you know you’ll have to drive lengths to your job in unideal weather conditions (such as a medical worker or first responder), you might want to consider an all-wheel drive to be safe. All-wheel drive cars tend to come at a higher cost than front wheel drive cars.
Another major consideration is the safety features that are available for the car. While some features only come with higher trim levels (the version of a vehicle that comes with certain features and equipment) which are more costly, some dealers can add these features custom to your car. Others are becoming more widely available on lower trim levels. Forward collision warning can automatically deploy the brakes if you get too close to the car in front of you. Lane departure warning will vibrate your steering wheel to alert you that you are about to cross into another lane. Rear parking sensors and a rear-view camera can help you back into a parking spot without hitting another object.
A practical but also luxurious feature in newer cars is the possibility of driving electric. As electric vehicles become more prominent, they may become a realistic option for you to buy. Electric vehicles can be a great solution if you are concerned about fuel efficiency. On gas vehicles, you can find the MPG, or miles per gallon. This set of numbers shows approximately how far a car can drive on the highway and city roads with one gallon of gas. Hybrid vehicles, cars that are both gas and electric powered, tend to have higher MPGs than solely gas vehicles. However, this isn’t a completely fair comparison because the hybrid vehicle can go farther because of the electric battery. On the other hand, you can spend less money on gas with a hybrid vehicle because it can go farther thanks to the battery.
When considering purchasing an electric vehicle, keep in mind that even though the car has a better MPG, you will likely be paying more up front for the vehicle. Electric vehicles tend to have a higher MSRP, or manufacturer’s suggested retail price. This will likely result in a larger down payment and larger monthly payments too. However, the U.S. Department of Energy offers tax credits for electric vehicles. This can help balance the price difference between gas and electric cars.
Research the availability of charging stations near you. The Greater St. Louis area has a decent amount of charging stations. However, a stop at a charging station can take around half an hour. Some have resorted to installing charging stations at their homes so they can charge their cars overnight. This can be costly work to do. Your electric bill will also cost more each month, but you aren’t paying for gas.
While this shouldn’t be a determining factor, it’s important to note the complications from an electric vehicle being in a car accident. No one plans for these, but they can happen. When an electric vehicle is in a moderate to major accident, the wheels on the car will lock. This prevents the car from rolling out of control down the road. However, it does mean that the car has to be towed, since it can’t be driven away from the scene of the accident. It can also cost more to repair since the wheels have to be unlocked before it can be driven again.
A major consideration for buying new vs used is the upfront cost of the car. A good rule to follow is to put down 20% toward a new car and 10% for a used car. Since new cars tend to cost more than the used versions with the same trim level, you could pay significantly more up front for a new car than for a used car. In addition to your upfront cost, your monthly payment will also differ. Our Compare Two Vehicle Loans calculator can help you see how much you will pay monthly for two different cars.
New cars also come with a factory warranty. A factory warranty covers the car for a specific time period or mileage of the car at no additional cost to you. Used vehicles either have a shorter window of time or mileage or maybe even won’t have the factory warranty. Extended warranties can be purchased from Alltru and car dealerships, but they do come at a cost.
Another factor to note is the car’s history, when you buy a new car, you don’t need to worry about its history. However, used cars could have neglected maintenance or have been in accidents. Websites like CARFAX give reports on cars so you can know how well the car was maintained before making your purchase. However, CARFAX reports only show work that was done at a body shop. If the car’s owner tightened the brakes or changed the oil, this won’t be shown on the report.
Don’t forget about insurance! Insurance for new cars tends to cost more than insurance for used cars. This is due to the vehicle being more desirable but also because they depreciate faster in the beginning. Insurance for electric vehicles also tends to cost more than insurance for gas vehicles. However, this price difference is due to a higher sale price and the demand of the materials to keep the car running. Many insurance companies will give you a quote if you have a car’s VIN number (vehicle identification number), so you can know how much you will pay for insurance before even buying a car.
Researching which car to buy can take some time. With these thoughts in mind, you can make an informed decision and find the best next car for you. When you’re ready to make your purchase, come to Alltru to finance your auto loan.
