56% of undergraduate college students own a vehicle while attending school. Having your own car opens up a whole new world of independence and freedom. But it’s important to choose the right car if you want to avoid buyer’s remorse.

Buying a car in college may seem hard, but as with any other purchase, knowledge is power. Invest some time and effort into making the right choice. Here are our answers to the most common questions first-time car buyers ask.

Which Car Is Right for Me?

There are different factors that determine your car choice. First, consider your needs. Will you use your car primarily to get around campus or for extensive traveling over the weekends? If you won’t be doing a lot of traveling, a smaller car will suffice. But if you need a car that can accommodate carpool partners on weekend adventures, you need a larger vehicle. If you want to perfect your driving skills, choose from the best fuel efficient sports cars.

Research different vehicles and then narrow your search to four or five. Find out the vehicles’ safety ratings, mileage, fuel efficiency, maintenance requirements, and accident history. And before you give the dealer your money, take the car for a test drive to see how it handles.

Should I Buy New or Used?

Some college students buy used vehicles simply because they are cheaper than new cars. Others prefer new vehicles to avoid the costs and hassles associated with used car repair and maintenance. Consider these factors before you decide whether to buy a new or used car.

• Fuel efficiency - Small cars are more fuel efficient than larger vehicles. Calculate how much gas you’ll need to buy each week for each car before making up your mind.
• Insurance rates - The more a car costs to replace, the higher its insurance premium. But the good news is some insurers discount insurance rates for students who earn a certain grade-point average.
• Warranty provisions - Used cars have limited warranties, while many new cars are covered for three years or 36,000 miles. If you’re buying a used car, know which repairs aren’t covered and factor them into your calculations. 
• Tire replacement - Some car tires cost $300, so find out how much it will cost to replace tires before settling on a car.

Should I Lease Or Buy?

Car-buying and leasing both have their pros and cons. Leased cars have lower monthly payments than new purchases. While leasing may help you afford a newer model, you will pay extra for any miles you’ve driven over the mileage limit at the end of your lease. You may also get charged if the vehicle has more wear and tear than is considered normal. And despite making payments throughout the lease term, you won’t own the car at the end.

Should I Get an Auto Loan?

Once you know the total cost of your car, you can determine whether you have enough money to buy it in cash or whether you’ll need a loan. If you need a loan and haven’t built up a credit history, you’ll need a cosigner—Someone with good credit to help you get a better interest rate.