No matter what type of vehicle you need, there are a lot of options to consider when choosing the make and model. In car language, the "make" is the brand and "model" is the particular car that brand manufactures.

So let's take a close look at some of the financial factors to consider when making your choice.

Fuel Costs

Depending on the type of vehicle and how many miles you drive, simply keeping fuel in the tank could be one of your biggest expenses. You can minimize fuel expenses by…

Choosing a fuel efficient or electric vehicle. Electric cars cost less money to recharge fuel up, but initial price of these vehicles tends to be higher. Hybrid selections are available, and some as cars get 40 miles or more to the gallon. If you need a truck or SUV, you can cut fuel costs by researching engine options. If you don’t regularly tow or carry large loads, a smaller engine will get the job done with less fuel.

Researching the type of fuel required before you buy. Premium fuel costs much more than regular fuel, so simply choosing a vehicle that uses regular fuel can save hundreds per year.

Insurance Premiums

Some people get an unpleasant surprise after they buy a car - an insurance quote. And when that happens, it can be tempting to buy a low-cost policy that may have high deductibles or skimpy coverage. 

Since some vehicles cost more to insure than others, getting a quote before you buy can help you avoid surprises and may even save money.

Maintenance and Repairs

One of the easiest expenses to overlook when considering a car purchase is the cost of basic maintenance and repairs. These costs vary significantly between cars – with some cars being up to three times more expensive to maintain than others. A little research can help you avoid the most expensive vehicles. 

Depreciation

Depreciation is the amount of value that a vehicle loses over time. New cars depreciate considerably faster than used - often losing 20 percent or more in value in the first year alone. Many cars lose more than half their value in as little as five years. That said, some cars hold their value better than others and a little research can help you make the best decision. You can also minimize depreciation costs by buying a slightly used car. 

Depreciation can be an especially important factor to keep in mind when financing a car. As loan terms now stretch as long as seven years, it’s easy to find yourself with an "upside down" loan, meaning the loan balance is higher than the value of the car. So if you wanted to sell the car and pay off the loan, you may need to come up with thousands of dollars in cash to pay off the remaining loan balance. And since lenders use your car as collateral and actually hold the title to the loan, you cannot sell the car unless you can pay off the loan.

The best way to avoid an upside down loan is to make a substantial down payment (20% or more) and keep the financing term as short as possible. Buying a used car or a new car that keeps more of its value will also minimize the risk of an upside down loan.