Five Hidden Costs To Consider Before Buying A Car

HARTFORD, CT - Ovtober 14, 2010: Consumers looking to buy a new car shouldn't get stuck on the sticker as there is more than the price on the window to consider in terms of total cost.

According to John Wilcox, senior vice president of The Hartford Financial Services Group, Inc., the stretch between fall and year-end may be one of the best times to buy a car, as dealers take delivery of next year�€™s models and offer deals to clear out current models. But with the average cost of a new car nearing $30,000, Wilcox recommends that consumers look beyond what they will pay up front and consider the hidden costs that will affect what they will pay for years to come.

"Before consumers walk into a showroom, they should take a "drive" through five key areas to assess the long-term costs of auto ownership," Wilcox said. "The true cost of ownership is more about Distance, Repairs, Insurance, Value and Extras than it is about the sticker price."

1. Distance: Government-mandated window stickers on every new car indicate average gas mileage -; something that drivers feel in their wallets every week. Consumers should consider driving distances to figure out approximate weekly fuel costs. Even a few miles-per-gallon difference in fuel economy can mean a savings of hundreds of dollars each year.

2. Repairs: Even the highest quality vehicles require regular maintenance and replacement parts, such as oil, brakes and tires. In general, luxury and performance vehicles cost more to maintain, but consumers should research if specific vehicles have better than, or worse than, average reliability - and review warranty and extended coverage options that may be available for purchase through the dealer.

3. Insurance: On average, the more a car is worth, the higher the cost of insurance. But consumers can control their insurance costs by considering "insurance-friendly" vehicles - those vehicles that are safer on the road and less prone to theft. A small car may cost less up front, but its safety record may cause one to incur higher insurance costs than a larger vehicle. Consumers can check with their insurer for an indication of rates before stepping foot onto the dealer's lot.

4. Value: Eventually the joy of a new car wears off, and drivers will want to make sure they get the most for their trade-in when the time comes for another new vehicle. By checking average resale values of different models before making a purchase decision, consumers can be confident they're getting the best value now and in the future.

5. Extras: Unfortunately, the sticker price doesn't always reflect the total up-front cost of a new car. So before falling in love with a specific vehicle, consumers should ask about extra costs that dealers may add, such as dealer mark-up, dealer preparation and the myriad of optional features.

For more information about ways to save on auto insurance from The Hartford, consumers can visit http://hartfordauto.thehartford.com/Auto-Insurance/affordable-car-insurance.shtml.

Before stepping onto a car dealer's lot:

-- Compare: Go online to compare different vehicles, including safety and repair records.

-- Call: Make a call to your insurance company to find out how different models affect the cost of coverage.

-- Check: Find out your credit score so you'll know if there will be any issues with financing.