5
DECISIONS TO MAKE BEFORE BUYING OR LEASING A CAR
• What will I use the car for? Do you drive mostly in the city or highway? Do you need extra room
to haul sports gear or equipment, or a bunch of friends? Is it important for you to have a small
vehicle that you can easily park?
• Should I buy a new or used car? New cars are more expensive, but some prefer a car
with a warranty that has never been owned before as opposed to a used vehicle that has had
previous owners. Learn more at
becu.org/learn-and-plan/articles-detail.aspx?id=108&type=
article&articles=1&webcasts=0&calcs=0&sort=newest&topic=1
• What features are important to you? Safety features like antilock brakes or airbags should
be the most important. You’ll also want to consider which additional features, like the stereo
components, are important to you.
• Is the car reliable? A car may look cool, but if it’s known for requiring many costly repairs, it’s
probably not the car for you. Ask to see the car’s service record. Take the car for a test drive
and have a mechanic look the car over before you decide to buy it.
• What model and style do you like? Safety and cost are important, but you also want a car in a
style you like. Remember, trends change and a flashy style may not be popular, or easy to sell,
in a few years.
• How will you pay for the car? Perhaps the most important question of all is if you will pay for
the car in full or require some financial assistance from an institution or your family. Think about
the total cost of the car, which includes interest payments, not just the monthly payments.
WHERE SHOULD I PURCHASE THE CAR?
There are different advantages depending on where you purchase your car. Which is best for you?
•
Dealerships
Best for car buyers who like the face-to-face contact and are skilled at negotiations.
You will also be able to see, inspect and test-drive the car.
•
Used Car Lots
If you have some knowledge about cars and feel confident about negotiating, a used car lot
may be best for you.
•
Private Sellers
People who would like to avoid car dealerships but still prefer face-to-face interaction and the
ability to see, inspect and test-drive a car should consider buying through a private seller.
You can often learn a lot about the car’s history from the seller.
•
The Internet
Those who like to research cars online and prefer to avoid negotiating at the dealership may
wish to research and then purchase a car online.
Each year, the BECU Foundation awards at least
27 scholarships of $2,500 each to members
active in their communities. Applications are
available and accepted January to March of
each year.
Now that you’ve developed smart saving habits
and thought about plans after high school, it’s
time to focus on today’s spending habits. One of
the most common big ticket purchases for teens
is a car. You learned car buying basics, and how
to shop for, inspect, and test drive a car in our
last BECU installment: services.nwsource.com/
nie/times/pdfs/10-14-12_BECU_Financial%20
Literacy%20for%20Teens%208-Page.pdf
What is the biggest purchase you plan to make
in the next year? If it’s not a car, how might you
apply some of these car-buying decision-making
tactics to your purchase?
Let’s dig deeper into car-buying by reviewing the key
questions to help you make the right purchase.
Buying
$2,500
