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3.0 SELECTING AND CHOOSING A NEW CAR; AUTOMOBILE DISCOUNTS - BUYING, LEASING, REPAIRING

Choose a reliable car. Manufacturers make major model changes about every 3-4 years. Choose one that has not gone through a major change, then check the reliability and recalls of past models. Read Consumer Reports Annual Auto Issue for predicted reliability of new cars.

Choose a car that holds its value. There can be a huge difference! For example, according to The Used Car Book a Honda Accord depreciated only 19% in four years, while an Eagle Premier had lost 67% of its value. The CR Annual Auto Issue includes an estimate of depreciation for each new car listed. Check depreciation of past models in Edmund's.

Choose a car with low insurance rates. Insurance is partly based on the accident and theft rate of each model as well as the cost of repair. Call your insurance agent to compare cars with the same coverage.

Don't buy more car than you need. For example, studies have shown that most people who buy 4-wheel-drive vehicles never use the feature.

Avoid very popular models. You will not be able to deal, and may even pay a premium.

Compare the TOTAL cost of a car. This includes maintenance, repairs, depreciation, gas etc. Money Magazine publishes a very comprehensive list annually of "Total Ownership Costs." For example, for cars selling in the $10,000-$15,000 range, there can be as much as a $14,000 difference in total expenses over five years.

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