Will You Save Money Buying a New Car?

You've seen it happen. As soon as a person pays off a vehicle they immediately buy a new one. Some trade vehicles even sooner.

Buying a new car for the sake of driving a new car is not a wise purchase. It's not a good way to achieve automobile savings.

Buying a new car to save money on gas can make sense, but often doesn't. The new payment eats up any savings the new car offers on gas mileage.

Car Savings Calculator

Vehicle & Mileage Items Enter Amounts
Average Miles Per Year:
Cost Per Gallon:
Current MPG:
New Vehicle MPG:
Current Monthly Payment: $
New Monthly Payment: $
Current Gallons Used Per Year:
Current Annual Fuel Cost: $
Gallons Used by New Vehicle:
New Fuel Cost: $
Fuel Savings with New Vehicle: $
Annual Monthly Payment Change: $
Total Annual Savings: $

Important Things to Remember When Buying a New Car

  • Never sign a document you do not understand fully.
  • Read Confessions of a Car Salesman before you begin shopping. It's an eye-opener that no new or used car buyer should miss!
  • Even though you may qualify for a big car loan, avoid buying more car than you can comfortably afford.
  • Before growing too excited about a particular car, go home and cool off for a day or two.