The Three Ps of Car Buying

At the writing of this article oil prices have been given to the unpleasant distinction of reaching what some are calling the "Not So Sweet 16." The phrase refers to the fact that the price per barrel of oil has risen for 16 consecutive days and is showing no signs of immediate slow down.

For the first time in United States history a gallon of unleaded gasoline reached $4 per gallon in two states and averaged $3.89 per gallon in other states. On average a car will hold between 12 to 15 gallons of gas which will cost around $46 to $58 each time you go to the gas station.

But if you're talking about filling up the 18 to 22 gallons that an SUV or a truck holds the bill will be more like a whopping $70 to $85 per visit or possibly even more. Talk about pain at the pump!

Everyone is feeling the pinch of skyrocketing gas prices, so what are you supposed to do when you've got your eyes on a sweet new ride? If a new or even used car purchase is in your plans don't be so quick to abandon your four-wheeled fantasy, you just need to make this very important buying decision based on the "3 Ps of Car Purchasing":

PRICE

Despite the fact that they were often $25,000 more expensive than a new car, SUVs and trucks have dominated the sales charts for the past 7 years, in some cases outpacing car sales three to one. Much of the demand was driven by desire, new long-term loan options and tax breaks.

But the tides have quickly turned and cars are making a comeback as the vehicle of choice. This has also caused the price of SUVs and trucks to hit what some would consider bargain prices. But is it smart to get a "good deal" on the truck of your dreams when the price of gas to drive it is the equivalent of a monthly loan payment?

When you are making your decision about how much you can afford to buy, you'll also need to factor in the overall price of operation. What will it cost you per month in payments, how much will it cost to fill up the tank, how many times you will have to put gas in it, and what are the insurance rates.

These are important calculations to make before you step into a dealership because you need to know how to answer the infamous question, "What will it take to get you to drive away in one of these beauties today...?"

PERFORMANCE

The Internet has made car shopping easier than ever, you can research the best price, identify the make and model you want and even read posts from satisfied (and not so happy) drivers of your dream car.

Having owned several cars and coming from a big car-loving family, I would have to say that performance is the number one factor that you have to keep in mind when deciding which vehicle to purchase. Figure you'll have your car for at least five years, that's a pretty long time to be stuck with an underperforming piece of metal.

Believe me, I know from firsthand experience that it does you no good to have a car that you're in love with but performs poorly. When I was in college I couldn't wait to get the bright red beauty of my dreams - it quickly turned into a nightmare when I realized that it wasn't the best car for the long distance drives I wanted to take. Even back when gas prices were just slightly more than $1, I had to fill up three times on a 200 mile trip!

Consider as many scenarios you'll need the vehicle for before making your buying decision. If you'll be doing mostly highway driving, be sure that the gas mileage is suitable for the highway.

PRACTICALITY

Popular TV shows like MTV's "Pimp My Ride," and CMT's "Trick My Truck," have given a whole new meaning to luxury cars. From flatbeds with fully functioning hot tubs to pedicure pamper stations - our imaginations have been given wheels.

The truth is you probably don't need to have a mini-bowling alley in the back of the truck you drive to work. So determining the must-have features of your vehicle of choice should be realistic and practical.

Sanyika Calloway Boyce is the author of four books. She travels nationwide to educate, empower, entertain and enlighten students about money, credit and debt. This former debt-strapped college student shares real and relevant money messages that young adults can relate to and understand. Visit her online today at financialfitnesscoach.com.

© 2008, Young Money Media, LLC. All rights reserved.

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