Finding the least expensive car may not be the best way to shop for a vehicle, especially when you factor in car insurance. If you are buying a car with an auto loan, you should consider how much the insurance will cost you. If the vehicle you want has a low price tag, but is expensive to insure, it could cost you more in the long-run. Plus, high insurance payments can make it difficult to make payments on your car loan.
“When shopping for a car, don’t just consider the cost, color and gas mileage,” Carole Walker, the executive director of the Rocky Mountain Insurance Information Association, told Fox Business. “You also need to weigh how your choice will affect how much you pay for car insurance. Insurance companies offer discounts for vehicles with higher safety and crash-test ratings and charge more for makes and models that are rated lower for safety and crashworthiness.”
You should also beware of vehicles that are expensive to repair as this can wind up costing you more over time, and it can increase your insurance rates. Ronald Montoya, a consumer advice associate at Edmunds.com, told the news source that luxury vehicles, sports cars and imports that need parts to be shipped from overseas tend to have higher repair and maintenance bills along with more expensive insurance payments. The initial price may fit your budget, but these cars will end up costing more over time, and you might not be able to repay your loans if you are bogged down with maintenance bills and insurance payments.
Drivers who want to be able to resell their cars in the future should also be wary of vehicles loaded with options. It may seem worth it to shell out a few hundred dollars for amenities such as heated seats, navigation and entertainment systems, but these extras are not likely to retain much of their value when you try to resell the vehicle. The same holds true for large luxury vehicles, which Montoya says do not hold value well because people prefer to own the newest models. The best bet to retain resale value is to target vehicles that rank highly in sales. So far this year, Cars.com reports that the Ford F-150, the Chevy Cruze, and the Toyota Camry are among the top selling vehicles in the nation.