Three Important Factors to Consider When Choosing a Car
Obviously price is a starting point, but to help you narrow down your choices further, you need to focus on the following three factors: Quality, Cost of Ownership, and Reliability.
Let's take a look at each one, explain why they're important, and provide you with the best resources for further research.
Factor 1: Quality
Quality refers to the workmanship and durability of the car, its components and accessories over time. Cars that are rated high on quality will experience fewer overall problems such as paint peeling, rubber seals wearing, rattling noises, etc.
These days, many quality problems tend to occur on tech features, such as navigation, adaptive cruise control, reverse-parking assist, and telematics systems such as GM's OnStar. J.D. Power's Initial Quality Study looks at the number of problems reported during the first 90 days of ownership.
It's important to note that redesigned or newly introduced vehicles will experience more quality problems during their first year of production than subsequent years. This is natural since manufacturers have to deal with unforeseen production glitches and errors.
I recommend waiting until the second year of production before buying a new car - it will not only save you money, but you'll experience fewer quality problems.
Factor 2: Cost of Ownership
The long-term cost of owning a car is considerably more than the actual price you pay for it.
Ownership cost includes depreciation, fuel, maintenance, repairs, and insurance. The largest of these costs is depreciation - the loss in value over time. Foreign cars tend to hold their value a little better than domestics.
ALG is a company that keeps track of resale values and provide awards for the best cars by segment. Cars.com provides a searchable index of ALG resale values here. To get a good idea of the overall costs of a particular vehicle, I recommend you check out the Intellichoice Cost of Ownership values as well as Edmunds True Cost to Own values.
Factor 3: Reliability
If you've ever owned a car that was always in need of repairs, then you understand why reliability is such an important factor.
The good news is that most vehicles nowadays are highly reliable. New car warranties cover at least 3 years or 36,000 miles, and some even go as high as 10 years/100,000 miles. Nevertheless, you still want a car that's going to be dependable.
Consumer Reports is a good source to check for reliability ratings. Each year, they survey about 500,000 car owners to determine which cars have the most reliability issues. Another great site is TrueDelta.com. They update their reliability ratings more often - every quarter instead of annually.
Finally, you'll want to check out J.D. Power's Annual Vehicle Dependability Study. They rank cars that are three years old to determine which ones have the best reliability.
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid