There is a lot more money that is put into a car than just the original purchase price. To buy cheap cars is not just original purchase price. There are several things to consider when buying a car. Many car dealers will not disclose to you what is important when determining the actual cost of ownership.

Although Toyotas’ and Hondas’ are more expensive to purchase upfront the cost of ownership is much less. These types of cars require less maintenance. These types of cars rarely breakdown and are very cheap to own.

There are many fees that you need to look at when you buy a car from a dealer. Look for a dealer doc prep fee and know what the actual sales tax rate is and what the title and licensing fees are going to be. Some dealers will inflate these costs on the contract and you can stop this if you know the actual costs.

Look at your local bank or credit unions interest rates before you sign a dealer contract for financing. Interest rates can be negotiable for good credit borrowers. Dealers will sometimes get a kick-back from the lender to place your loan with them.

What dealers actually pay for a car is something that varies per location. Most dealers pay average MMR for vehicles that run through auctions. This average is just below trade-in. The condition of the vehicle and the vehicles title will determine what a dealer will pay.

Make sure you look at the depreciation of the vehicle. If a car depreciates rapidly it is not a good buy. The older the vehicle the less it will depreciate. Toyotas and Hondas depreciate very slowly but Kia and some American made brands have very fast depreciation.