Friday, August 13, 2010

The Cheapest Cars to Own

You know what it costs to buy the car you want, but do you know what it would cost for repairs and insurance? Some 'inexpensive' cars don't stay that way.

The recession has created some seemingly great deals on car purchases and leases. But buyers need to beware of some unpleasant surprises that may await as soon as their vehicles need repairs.

Because of differences in design and manufacture, two vehicles with similar price tags can rack up vastly different fix-it bills over time. And cars with higher repair costs ding their owners another way: in higher insurance premiums. Insurers tend to boost the cost of collision coverage on vehicles that regularly rack up big repair bills -- and whether you wreck or not, you'll pay that cost year after year.
Why the variations? Among the key factors:

•Design. How a car is put together can determine how well it survives a crash and how much it costs to fix afterward.

•Technology. Obviously, cars in general are far more sophisticated than they used to be, but some really push the envelope. The more cutting-edge the technology, the more training is required for mechanics and the more specialized the parts.

•Imported versus domestic. If the car is imported, chances are the parts need to be as well. That can add to the price, particularly for less-popular makes.

•Luxury versus everything else. All other things being equal, more-expensive cars cost more to repair.

Read this article in full.

And be sure to watch the Ins and Outs of Car Buying, Nevada Federal's informative video tutorial on car buying and tips you’ll need before heading to the dealer.

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