Car Buying Guide

Cars are depreciating assets that drain money quickly. Smart car buying minimizes this drain while meeting your transportation needs.

Buy used, not new. A new car loses 20 to 30 percent of its value in the first year. A three-year-old car has already absorbed this depreciation and is often still under warranty.

Pay cash if possible. Car loans add interest to an already expensive purchase. If you must finance, put at least 20 percent down and keep the term under five years.

Total cost of ownership matters more than sticker price. Factor in insurance, fuel, maintenance, and depreciation. A cheaper car to buy might be more expensive to own.

Get pre-approved for financing before visiting dealerships. Walking in with a pre-approved loan gives you leverage and prevents pressure to accept dealer financing with hidden fees.

Negotiate the out-the-door price, not the monthly payment. Dealers love to focus on monthly payments because it obscures the total cost. Insist on seeing every fee and tax.

Have a trusted mechanic inspect any used car before purchase. A hundred-dirham inspection can save you thousands in hidden repairs.