How to Buy the Best and Safest Car

How to Buy the Best and Safest Car

If you’re shopping for a car for college there are three main considerations to take into account before purchasing it: price, safety, and reliability.

For your son or daughter, the most important facet may be the “cool” factor, but ensuring they’re driving in a good, solid, and safely-rated vehicle will not only provide piece of mind, but it can save money too.

Buying a new car can provide you with a lower interest rate, better gas mileage, discounts on your insurance, and access to some of the top safety features of today, including rearview backup cameras, blind spot detection and collision warning, and forward collision mitigation system, which automatically engages brakes when the car senses a collision is imminent.

But buying new is costly in other ways – namely price. New cars depreciate much faster and there not always affordable or desirable, especially if the car is going to sit out in a college parking lot unattended for 4-5 days a week. Also, you may qualify for more discounts on your auto insurance due to safety features, the base premium may be a lot higher since it costs your insurance company more to replace a newer vehicle if it’s totaled.

If buying used or certified pre-owned is a better choice for you, you’ll save on the initial cost and find that even newer models have a lot of the safety features you desire.

Step1: Research

Whether your driving student is in high school or college, it’s important to include them in the process.

Let them help you research the safest vehicles, desirable safety features, and start browsing the newspaper or online car ads for vehicles in their area. They can look up the Kelley Blue Book value and then see what similar cars are going for in the area.

There are a multitude of online sites that can bring them up to speed quickly – in as little as a couple hours.

Step 2: Setup a budget/Calculate insurance costs

Calculate a budget you, or your student, can afford.

Besides gas, maintenance, and registration, you should factor in insurance costs. Safety ratings, the age of the vehicle, and other factors are used to help determine annual or biannual insurance costs.

If you have a couple makes and models already in mind, you should call your insurance agent to understand what the insurance premiums would be on these types of vehicles. You might be surprised at the price differences.

>> Related: Want to save money on a car? Try buying used

>> Related: Paying with cash is still better than financing

Step 3: Test drive it

Go to the dealership or the private seller and make sure to test drive the vehicle. If you’re very mechanical, take it to a trusted mechanic to determine if the vehicle has any major issues. The shop may charge you for this diagnostic but this is a big investment and repair costs can add up quickly.

Step 4: Negotiate

Several online sites will tell you how to negotiate a car price, including Consumer Reports, Forbes, Edmunds.com, and others will provide tips on how to get a good deal. A few quick tips:

• Take your time: Don’t negotiate too quickly. Sometimes remaining steadfast with your price and spending some extra time haggling with the sales person will get you the price you want (or at least much closer to it). Let the sales person offer you the starting price and start from there. Edmunds.com recommends letting them know you’ve been shopping and you know fair prices, so see what the initial price is. Remember, the salesman most likely lives on commission, so he or she wants to get the highest price possible while you’re seeking the lowest.
• Read the warranty: If the car has a warranty, understand it completely and read through it carefully. Most basic warranties cover three years or 36,000 miles but coverage can vary by manufacturer and won’t cover regular maintenance. The most common coverages will include “bumper to bumper” warranties, which covers defects in factory-installed parts, and “drivetrain/powertrain warranty” covering the engine, transmission and transaxle and tends to last longer than bumper-to-bumper.
• Take risks: Don’t be afraid to low ball the price. Sometimes making a very low offer sets the expectations that you’re not going to pay a lot.
• Cash or Loan: You will save more money over the long run if you pay cash rather than take a loan, which almost always involves interest. Never negotiate based on monthly loan payment amount – rather negotiate the total price of the car first and compare the interest rates you get from the dealer, your bank, or a credit union.

Step 5: Registration and insurance

Once you agreed upon the car and purchased it, you’ll need to register and insure it. Many insurance companies offer discounts for students, although the cost of insurance can be extraordinarily high for those under the age of 25. Insurance discounts and other factors include:

• Remember liability: If you’re adding your student onto your policy, speak to your insurance agent about liability and having enough coverage to protect your assets. If you have $300,000 worth of coverage and your teenage driver gets into a serious accident, your assets may be at risk. You may want to ask your agent about buying an umbrella policy and adding $1 million or more to your auto and homeowners liability coverage, which can cost $200-$400 per year, according to a Kiplinger article.
• Good student discounts: If your younger driver maintains a certain grade-point level then a discount may be available.
• Resident student discounts: Some insurance companies will offer discounts for students attending college far away from home and is planning to not drive for several months a year.

Step 6: Road service

Finally, now that your high school or college student has his car, consider enrolling in an automotive club. In addition to AAA and the National Motor Club, insurance companies also offer roadside assistance.

Automotive clubs offer piece of mind when parents aren’t nearby to help with a car that’s broken down or if your student has locked themselves out of the car. Prices and services can range dramatically so shop around.

 

Ultimately, it is your call on what car to get.  While there are many things to consider when purchasing a car, it is always important that you have the proper auto insurance for you.  Speaking to an insurance agent will help you get the policy that is right for you.  Also make sure to ask for any discounts that you may qualify for.

Call Encharter today at 888.754.8299!

Originally published on InsuraMatch.com

 

 

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