PERT Reading Practice Test

How to Choose and Purchase an Automobile

Choosing and purchasing an automobile in a volatile market is not simply a function of color or engine preference; on the contrary, consumers need to treat the purchase of an automobile as the investment that it is—they need to research the pros and cons of owning various automobiles, and they need to make an informed decision before arriving at the dealership. Failure to properly prepare for such an investment can result in an unnecessary economic loss for the consumer.

While there are many pros and cons associated with automobile ownership, many consumers do not adequately research the specific benefits and detriments associated with purchasing a particular vehicle. One of the most common concerns is economic: how much does it cost to own a particular vehicle over time? The cost of ownership is not limited to purchase price; it also includes things like insurance prices, repair costs, and gas consumption. While a given vehicle may have a higher sticker price, its low cost of ownership may, over time, offset this expense. Conversely, a vehicle may have a low sticker price but a high cost of ownership over time. Accordingly, consumers should thoroughly research vehicles before they visit an automobile dealership.

There are numerous ways for consumers to research the cost (defined broadly) of a vehicle before they ever step inside the vehicle. Most simply, there are a number of publications that list the relative depreciation of automobiles over time. Consumers can use these publications to track how a particular model tends to lose value over time and choose the vehicle that best retains its value. Consumers can also go directly to a manufacturer’s website to compare gas mileage or the cost of replacement parts. Furthermore, insurance agents can provide insurance quotes for customers before a purchase is made. Awareness of factors such as these can also simplify the purchasing process.

When a consumer is finally ready to purchase a vehicle, he or she is less likely to be pressured by a salesperson if he or she is equipped with the relevant data for that purchase; if a consumer knows the long-term costs of a particular vehicle, he or she is less likely to be swayed by short-term or cosmetic benefits. Arriving at a dealership unprepared can result in an impulse purchase, which, in turn, may result in increased automotive expenditure over time. Conducting even a modicum of research, however, can potentially save the average automotive consumer thousands of dollars in the long run.