Computer Applications I Research Paper

Purchasing a Car

Purchasing a Car

Buying a car used or new is a big deal. We use cars every day to take us from point A to point B and vice versa. They allow us the freedom to go to the movies, shopping centers, and family vacations whenever we please. Owning a car is important to our daily lives; it is equally important that we make good decisions when it comes to acquiring one. To do this, we need to research and educate ourselves on the car buying process. The things that we need to look for are:

* New or Used Vehicle

* Cost

* Make and Model

* Rebates and Incentives

* Fees and Taxes

* Financing and Insurance

In an attempt to research these points, it will make each of us better and more informed car buyers.

New or Used Vehicle

In the considerations for buy a car we need to ask a simple question, new or used? New cars come with factory warranties which cover parts and services for a specific amount of time or mileage. A new car will have less maintenance, except an occasional oil change, and the ability to decide what features and options the car will include. Used cars are not as expensive as new which will allow you more choices. They have also become more reliable today than in years past. There are several certified pre-owned programs for used cars that come with their original warranty and the option to add to it. The decision to buy either new or used eventually rests with you and with what you can afford. Purchasing a new car will be the focus of this report.

Cost

The first step in any car buying process is figuring out how much you can afford. Financial experts, like the ones from Consumer Reports.org, recommend that your total debt payment not exceed 36% of your gross income. The debt should include any mortgage, rent payments, loans, and credit card bills. ie. An income of $52,000/yr. multiplied by 36% would equal an annual debt payment limit of $18,720. If your total debt payments are $12,000, then you can afford a...