Buying a Car

You have been saving for years, and now you have $20,000 to spend on a new car. How do you decide which car to buy?

Decide on a Vehicle Category

Before you start looking for a vehicle, you need to figure out what you really need. Complete the following questions to help you narrow down your options.

1. What are all your reasons for buying a car? Examples include commuting to school, going on long vacations, taking your younger siblings to soccer games.
2. What type of driving do you do (city, off-road, long trips, suburban)?
3. Do you need a large amount of cargo space?
4. Do you need room to transport a large group of people, or only two or four people?
5. Now go back through the reasons you listed in Question 1. Find the three most important points and write them in the spaces below. These are probably the things that you will use your vehicle for most of the time.
6. Now for the tough part. Below is a list of major vehicle categories. Based on your answers to Questions 1-5, cross out the categories that don't fit your vehicle use profile. In other words, if one of your main uses is "go camping every weekend," then cross out "two-seater convertible" because you won't be able to fit all your camping gear into it.

economy hatchback	two-seater convertible	full-size van
small two-door sedan	sport-utility vehicle	full-size pickup truck
full-size four-door sedan	minivan	luxury sedan

Which major vehicle categories do you have left?

7. If you have more than one category left, choose the one that you would prefer.

Narrow Down Your Choices

There can be dozens of makes and models in each vehicle category, so before you rush out to take a test drive, you should narrow down your choices. Use the following resources to help you with the questions below.

• car-buyingguides
• consumer guides from nonprofit organizations such as Consumer Reports or Consumers'Checkbook
• National Highway Traffic Safety Administration's website

Choose three specific vehicles within your category that you particularly like. Include both the make and model.

1. Now, decide which options you would like on your new vehicle. Below is a list to get you started; however, you may want other options that are not included on this list. Write the options you want in the space provided.
2. blue tooth technology
3. hybrid or electric
4. driver and passenger airbags
5. air-conditioning
6. power locks and steering
7. anti-lock brakes

Complete the chart below. Begin by writing the make and model of the vehicles you're comparing at the top of the right three columns.

Thisvehicle	Vehicle#1	Vehicle#2	Vehicle#3
Includes the options I want
Has a good safety record
Has a good reliability record
Has a solid warranty
Has an invoice price of...
Has a manufacturer's suggested retail price (MSRP) of ...

After comparing the three vehicles in the chart above, which one would you buy. (Remember that you have $20,000 to buy this car.) Explain your decision.