Four Things to Do When Test Driving a Car

by Justin Fischer | Last updated Oct 9, 2024 | Car Buying, New Cars, Used Cars

You should never buy a car without first taking it for a test drive. If you are new to the car buying game, you may not know what to watch out for during a test drive. Here are four things to pay attention to when you test drive any vehicle.

1) Test all of the features 

A modern car is loaded with screens, knobs, and buttons. You may not need them most of the time, but you should be confident that they will work if and when you do need them. Before you begin your test drive, try out all of the various tools and accessories in the vehicle, such as windshield wipers, seat adjustments, mirror adjustments, window controls, radio controls, and even the sound system. 

If the car salesman tries to rush you, kindly let them know that you will need some time to review everything, and that when you are done, you will seek them out for your test drive. If everything works well, it’s a good sign; if not, you’ve got a list of things to review with them. Remember, you are likely buying the car as-is, so discovering that the defroster motor doesn’t work, after the fact, may cost you.

2) Don’t stick to predetermined routes

When you are out on a test drive, the sales associate who rides along may try to persuade you to do a quick drive around the block before heading back to the lot. However, this route most likely won’t allow you to gain a complete understanding of the car’s performance. The best way to do so is to test drive it on an unplanned route that includes both highway and city driving. This will allow you to get a better understanding of how the vehicle accelerates, how the brakes perform, and the ease with which it turns in tight corners. Drive the car the way you would drive it everyday.

3) Connect your smartphone

Smartphone connectivity has become one of the top features that potential car buyers look for. Not all cars have Apple CarPlay or Android Auto. The ease with which you can connect your phone to the vehicle can vary quite a bit from one car to the next. Depending on the car you are in, you may be able to connect your smartphone with a simple touch, or you may have to navigate through menus to accomplish the task. Test the smartphone connectivity as a part of the test drive. There’s nothing more frustrating than not being able to listen to your music when you get a new car.

One important note: don’t forget to unpair your phone when you’re done!

4) Understand the new tech

If you are upgrading your car, you may encounter a host of new tech features that weren’t there in your previous vehicle. These may include adaptive cruise control, lane-keep assist, automatic emergency braking, and even more advanced tech like Autopilot. Take the time to understand them and test them out before you make your purchasing decision.

Don’t rush through the test drive

Test driving a car is one of the most important steps in the car-buying process. By taking the time to test all the features, choosing a diverse driving route, connecting your smartphone, and understanding the new technology, you can make a more informed decision and avoid surprises later on. Remember, you’re not just test driving for a quick feel; you’re assessing how well the car fits your daily needs. The more thorough you are, the better chance you have of finding the right vehicle for you.

Car Ownership Costs Beyond the Price Tag: What to Expect

by Justin Fischer | Last updated Oct 31, 2024 | Car Buying, New Cars, Used Cars

When buying a car, most people focus on the sticker price, but the total cost of owning a car goes far beyond that initial figure. While the purchase price is a major consideration, ongoing costs like insurance, maintenance, depreciation, and financing can add up quickly. Understanding these hidden expenses is crucial for making a smart financial decision. Whether you’re buying new or used, being aware of the true cost of owning a vehicle can save you from unexpected financial strain down the road.

Depreciation

Depreciation represents the value loss of a vehicle from the moment it’s purchased. A car’s value often drops as soon as it’s driven off the lot, and this affects both new and used vehicles. While you don’t pay depreciation directly, it’s important to account for it if you plan to sell your vehicle in the future.

Luckily, calculating depreciation is straightforward. At the CarEdge Research Hub, we provide updated depreciation data to give you a clear picture of your car’s value over time. Check out depreciation rates for your car to make more informed decisions.

In rare cases, vehicles may increase in value due to high demand, such as collector cars. But for the majority of cars, depreciation is inevitable.

Insurance Premiums

When you purchase a vehicle, you will be required to purchase insurance. If you are financing a vehicle, it will be mandatory that you get full coverage insurance. If you purchase a car and pay it in full, you can choose to get liability insurance. Full coverage is going to cost more due to the comprehensive coverage that you get compared to liability insurance. Insurance policies can cost anywhere from $50 up to $300+ per month depending on the vehicle, the type of coverage you get, and your recent driving history. 

For those with speeding tickets or accidents on their record, insurance costs may be higher. Always get insurance quotes before purchasing a vehicle to ensure you can afford both the car payment and the insurance premium.

Maintenance & Repairs

Maintenance and repairs are inevitable parts of car ownership, and these costs can vary depending on the make, model, and age of your vehicle. Regular maintenance like oil changes, tire rotations, and brake checks are essential for keeping your car in top condition and can help you avoid costly repairs down the road.

To reduce long-term costs, follow your vehicle’s maintenance schedule and consider setting aside an emergency fund for unexpected repairs, such as transmission or suspension work. Some repairs are unavoidable, but taking proactive steps can minimize expensive breakdowns.

See average maintenance costs for your car at the CarEdge Research Hub

Financing

When financing a car, interest can significantly increase the total cost of ownership. The longer the loan term and the higher the interest rate, the more you’ll end up paying. Let’s break it down with an example:

Imagine you finance a car for $30,000 with a 5% annual percentage rate (APR) over 60 months. Over the course of the loan, you would pay about $3,968 in interest, bringing the total cost of the car to $33,968. If you extend the loan term to 72 months, you’ll pay an additional $1,043 in interest.

To minimize the cost of interest, consider opting for a shorter loan term and shop around for the lowest APR. If possible, improve your credit score to qualify for better rates. Additionally, making a larger down payment can reduce the total loan amount, helping you save on interest over time.

Compare refinancing rates all in one spot

Other Costs of Vehicle Ownership

There are a few other expenses that you should take into consideration when it comes to owning a car. State registration fees are a great example of a yearly fee you can count on paying each year you register your vehicle. This will vary state by state, so check with your local DMV to see what your current state registration fees are. Many states levy ‘property taxes’ on vehicles based on the value of the car. These vehicle property taxes can add up to a few thousand dollars per year for luxury vehicles and expensive trucks.

Tires are another maintenance item that can add up over the years. These days, a set of four quality tires can cost $1,000 with installation and disposal fees. Tires increase in cost with larger and more uncommon sizes. 

A Car’s Total Cost of Ownership Can Vary Widely

In conclusion, the total cost of owning a car goes far beyond the initial purchase price. Key factors like depreciation, insurance, maintenance, and financing charges can significantly impact your overall expenses. Some cars depreciate faster, others come with higher maintenance costs, and interest rates on car loans can add up over time. Be sure to evaluate all these variables when determining whether a vehicle is the right financial decision for you. By understanding the true cost of ownership, you can make smarter, more informed choices.