Transportation costs make up almost one-fifth of the average consumer’s budget. The document provides tips and worksheets for determining your vehicle needs and priorities, researching costs of ownership such as depreciation and fuel, and calculating financing options when purchasing a new car. Key factors to consider include the type of vehicle needed, maintenance costs, insurance rates, fuel efficiency, and comparing interest rates versus rebates to determine the best financing option.

1. “Transportation costs make up almost one-fifth of the average consumer’s budget.”Making money sensetips and ideas to help your family prosperThe Car Buying Process

2. Questions To Ask…What Kind Of Car Do You Need?2How long do you want it to lastWho will be in the carMain use of the carSpecial needsWeather conditionsMaintenanceNew or usedSafety featuresResale valueInsurance cost

3. Vehicle Priority WorksheetFor each characteristic, fill in the quality you’re seeking and how important it is to you using this scale:0= Not Important 1= Fairly Important 2= Very Important 3= MUST Have2

4. Vehicle Priority Worksheet Cont…2

5. Vehicle Priority Worksheet Cont…2

6. Consider All Vehicles In A ClassHelpful Website:http://www.edmunds.com/new-cars/Pick the type of vehicle you are interested in Once you select a vehicle click on the review & specs tabAt the bottom left hand side under helpful tools click on compare to popular modelsAccording to the 2006 edition of AAA’s Your Driving Costs Study, the overall average cost of owning and operating a passenger vehicle that is driven 15,000 miles in one year is $7,8233

7. Consider All The Costs Of OwnershipAnother helpful link: http://www.edmunds.com/apps/cto/CTOintroControllerThis is a pricing system that calculates the additional costs you may not have included (depreciation, interest on your loan, taxes and fees, insurance premiums, fuel costs, maintenance and repairs) when considering what car to purchase.4

8. Buying vs. Leasing 5

9. How Much Can You Afford“New cars depreciate 20-30 percent the second you drive them off the lot.”Bring your own financing! The last place you want to secure financing is at the dealership.http://www.myprospera.com/rates_and_calculators/calc-loan.aspEstimate your monthly payment right at Prospera’s website by entering in your loan amount, length of loan and interest rate.http://www.edmunds.com/apps/calc/CalculatorController?pmtcalAction=basic_calcEstimate what your monthly payment will be based on purchase price, down payment, interest rate and length of loan.6

10. Rate vs. Rebate6To determine if taking a low rate is better than cash back view the following example:If you borrow $16,000 for 36 months at 0% your monthly payment would be $444.44 and you would pay back $16,000 over the life of the loan.Suppose you take a $2,000 rebate and finance $14,000 for 36 months at 4.49%; your monthly payment would go down to $416.39 and you would pay back $14,990.04 over the life of the loan.By taking the rebate and financing with your credit union you could save $1,009.96.

11. For more information:920.882.4800www.myprospera.comFor more great financial tips and news follow us on Twitter and facebook!http://twitter.com/MyProsperahttp://facebook.com/