Students, grads have options for dependable, affordable cars
May 14, 2012
With the price of getting a college education continuing to increase, many students are trying to find ways to save money in other parts of their personal budgets.
Recent graduates, who are often cash-strapped due to college loan debt, may also be looking for ways to stretch their money further. In fact, a recent report from the National Association of Consumer Bankruptcy Attorneys (NACBA) revealed that college seniors who graduated with student loans in 2010 owed an average of $25,250 each.
Current students and recent grads are often forced to put off big purchases like a car, even though they may need one to commute to school or work. But experts say there's no need to overpay in order to get a reliable vehicle.
"We advise grads on a tight budget to seek out cars that are around five or six years old and to make fuel-economy ratings and safety features a priority in addition to price," said Langley Steinert, founder and CEO of CarGurus.com. "Narrow your budget and must-haves before you even start looking - and stick to them."
Many cars from the 2007 or 2008 model year with typical mileage will cost between $9,000 and $12,000.
Among some recommended vehicles for those who will be primarily commuting to and from a job or school are the 2008 Kia Rio, 2007 Toyota Yaris, 2007 Hyundai Elantra and 2007 Toyota Corolla, according to CarGurus.com. Individuals who need a slightly larger vehicle to transport their families and/or cargo may want to consider a 2007 Ford Escape or a 2007 Honda Fit.
Regardless of what make and model car you choose, experts say there are ways to ensure you get the best deal possible when buying a car. They include choosing options carefully, doing price homework online and expanding your search area.
In addition, those in the market for a used car should be patient in order to avoid overpaying. According to the CarGurus Used Car Price Index, the average price of a used car is up nearly 5 percent since January. Prices tend to be lower in winter months, and that means you could find considerable savings if you can postpone your purchase.
The good news for mothers who want to return to college but worry about the long-term financial fallout is that grants for parents, scholarships for mothers and single mother scholarships all help them pay for school without having to worry about long-term debt.
