Special Considerations

When looking at the deals available on new cars, some involve special situations. Many automakers offer a special rebate of $500 to $750 available only to first-time buyers and college students. If you are thinking about buying a car for your child, does it make sense to put the car in his or her name in order to get such a rebate? Probably not. Your college student's auto insurance bill will likely be much higher in his or her own name than if you insure that car along with your others. When you, as an older driver, are the policy holder and the young driver is an additional listing on the policy, the penalty is not likely to be as great.

Information readily available online has taken much of the mystery out of shopping for a car. But one thing hasn't changed: If you are not prepared, you probably will get a bad deal, and that is just as true for financing as it is for the car price itself.

If you are going to discuss auto financing, you need to speak the language. Here are some key terms. Since leasing has its own special jargon, leasing terms are explained in the second section.

Published on 04/28/05