10 Steps to Finding the Right Car for You

Step 5: Have you considered all of the costs of ownership?

Here is an often overlooked fact of car ownership: one car might be cheaper to buy, but more expensive to own. Why? Even if two cars cost about the same to buy, one can depreciate at a different rate or cost significantly more to insure or maintain. Before you commit to one car, you should estimate the long-term ownership costs of the vehicle you are considering. These include depreciation, insurance, maintenance and fuel costs. The Edmunds.com Web site has a feature called Cost to Own, which presents this information in an easy-to-read table.

Another tool you should use is Edmunds.com's True Market Value (TMV®) pricing. By following the prompts you can find out what a fair price is for the car you are considering. The TMV price is the average price other buyers are paying for the same car in your area. TMV represents a good price for you and a fair price for the dealer.

By using TMV and TCO, you can make a smart decision up front and then save hundreds of dollars over the life of the car.

By Philip Reed, Senior Consumer Advice Editor
Article Source: Edmunds