(BPT) -  Car buying - It's crucial to know how to navigate what can be an overwhelming and exhausting process.

“USAA helps members find, finance and insure vehicles that are right for their personal needs and financial goals,” says Heather Pollard, vice president of Auto Experience at USAA. “We want to avoid you ever having to regret your purchase decision, or worse, lead to financial hardships where you can no longer afford to keep your vehicle.”

If you are one of the millions of Americans looking to buy a car, here are the five things you need to know before you step foot on a dealer’s lot.

Know what you can afford.

The first and most important question to answer before launching into the car-buying process is “how much can I afford?” Figuring this out will help you determine whether you are in the market for a new or used vehicle. A good starting point is to use 15-18 percent of your take-home pay as a gauge for your total vehicle budget including the loan, insurance, gas and maintenance.

Next decision, how will you pay for it? There are numerous ways to manage the financial burden for purchasing a new car, including taking out a loan. If you have decided to go the loan route, determine how much you can afford in monthly payments. Banks or another financial institution might offer lower interest rates than a car dealer. Aim to pay off the loan within three to five years.

“Get pre-approved for an auto loan amount and interest rate so you know where you stand before you begin shopping,” says Renée Horne, vice president of Consumer Lending at USAA Bank. “Look for low loan rates and flexible terms to fit your budget needs versus being steered by dealers into a decision solely based on monthly payment, which often results in paying more in interest for the overall loan term.”

Another idea is to sell or trade in your new graduate’s current vehicle. If you plan to do this, factor in the cash value of that car and then add your planned down payment, typically 15-20 percent. You can use online tools such as USAA’s Auto Loan Calculator to get an estimate of what the end price tag will be.

Determine the total cost of ownership.

It is important to understand the total cost of ownership before surprising your graduate with the car of their dreams. Everything from gas to auto insurance will be an extra expense added on to the monthly cost for a new or used car and something everyone in the family needs to consider.

When receiving an auto insurance quote, note that collision and comprehensive coverage generally cost less for used cars. If purchasing an older car, consider getting pricing for Extended Vehicle Protection coverage before you go to the dealer.

Keep an open mind.

Once you have established what you can afford and the total cost of ownership, it is time to discover what features and styles you or your teen want in a car. Prioritize a list of the features you would like to see. For the teen in your life, safety is usually at the top. Next, assess how much they will be using this car and what for. Are they commuting to school or a job? Remember to keep an open mind and be flexible — stay open to two or three models that would meet your teen driver’s needs and your or their budget.

Do your research.

Everyone can agree that dealerships can be overwhelming and intimidating. Research your market first. Try the USAA Car Buying Service to see what’s out there and find vehicles that come with exclusive member discounts.

If you are looking into the used car market, always run a background check. You can get a vehicle history report from Carfax, which can help verify ownership history, mileage and accident history. Also, make sure the used vehicle has never been salvaged by entering the vehicle identification number into the National Insurance Crime Bureau’s system.

Go for a test drive.

After picking out a few of your top favorites, it is time to see how the car operates on the real road. Hit the highway to properly gauge a car’s performance, and inspect the car for mileage, tread, etc. If possible, run the car by a trusted mechanic for an under-the-hood inspection to forecast longevity and maintenance needs. Remember, factory warranties usually transfer depending on the mileage.

(BPT) - If you’re in the market for a new car, you might be thinking about leasing. After all, it seems very attractive on the surface — so attractive that leases accounted for one-third of all vehicles sales nationally in 2016. Taking a closer look though, you may be surprised to see there's more than meets the eye in some lease offers. So, here are a few need-to-know nuggets about leasing a car.

Cash up front is required.

If you're thinking that leasing gets you out of needing cash for a down payment, think again. That low monthly payment you’re after comes with upfront costs like taxes, registration, tags and other fees all due at signing. This could cost you thousands of dollars. And, if you want to lower the monthly payment even further, you’ll have to put additional funds toward the cost of the lease to get your payment where you want it to be.

Bells and whistles cost extra.

Just like when you’re buying a new car, the extras cost more. Advertised lease specials are usually for the base model — not the one with the navigation and safety packages you’re probably coveting.

Adding on all the bells and whistles to your vehicle will mean higher payments because that raises the price of the car. Again, you may have to put an additional deposit down to land the payment you think you can afford.

Not owning means no asset.

Leasing is basically renting a car for an extended period of time — three to five years or so. Unlike buying a car, you won’t have an asset at the end of your lease. Which means you’ll have a decision to make: pay the residual value (the value of the car at the lease's end) to own the car outright, finance the residual or turn in your leased car for another. Regardless, you’ll again need the cash for a down payment or the upfront costs for your next lease — whereas with buying a car you'll have a definitive end to monthly payments. Once your loan is paid off, you can put that money toward savings or paying down debt. Or, you can use your car as a trade-in on another ride or for cash if you ever need to sell it.

Once you're in it, stay in it.

If you get halfway through your lease and decide it’s not for you, you’ll be charged for early termination, something to keep in mind if your financial lifestyle changes often. In some cases, you might be required to continue to pay all regularly scheduled payments or your credit could take a hit.

Understand complex negotiations.

Understanding how a car loan works can sometimes be difficult for a first-timer, and things get even more intricate when you lease. Here are a few terms you may hear during lease negotiations:
Capitalized cost: Cost of the vehicle today.
Lease term: Length of the lease, usually expressed in months.
Residual value: Vehicle’s expected value at the end of the lease.
Depreciation: The difference between the capitalized cost and residual value.
Lease factor, or money factor: Cost of leasing, or interest — usually expressed as a very small number such as .003. Multiply this number by 2,400 to get your interest rate. In this example, that’s 7 percent. As a note, interest rates on leases tend to be higher than those on auto loans.

If you want to ace your lease negotiation, you should study the vocab and have A+ credit, too. You may not get the best deal if you’re unsure about your credit score, leasing terminology or the calculations mentioned above.

Mind your miles.

Depending on how often you get behind the wheel and how far you go, you could be forced to make some lifestyle changes if you lease. Most leases cap mileage somewhere between 10,000 and 15,000 miles per year, or a total of 30,000 to 45,000 miles. Driving over this limit could cost you up to 25 cents per mile.

If you drive 30 miles round-trip for your commute, you’re traveling 150 miles over a five-day workweek. That’s nearly 8,000 miles just driving to work each year — 24,000 miles over the course of your lease. Depending on your limit, that doesn’t leave much wiggle room for things like road trips, traveling to sporting events, chauffeuring the kids to extracurriculars or even grabbing a bite to eat downtown. Those things could be taken off the table if you lease. If the freedom of driving whenever, wherever is something you enjoy, a lease may not be the best option.

The choice is yours.

Leasing might be for you if you want to drive a new car every three to five years, can drive within the limits and maintain good credit. On the other hand, today’s cars can easily last 10 years if maintained well, and once fully paid for, allow you to sock away monthly payments for other things. There are sites that offer side-by-side comparisons of buying and leasing to help you make the right choice.

This calculator from Navy Federal Credit Union is just one example. In the end, it's up to you. Armed with the details on the real deal of leasing and your buying options, you're on the road to making the right choice.

(BPT) - Buying a new car to reduce your carbon footprint seems logical. But surprisingly, keeping the vehicle already in your garage, or replacing it with a more fuel efficient used car may be a greener choice. That’s because it takes a lot of energy and raw materials to manufacture a new vehicle. "It varies between models, but it is reasonable to estimate building a new $30,000 midsize car will generate greenhouse gases that are the equivalent of 14 metric tons of CO2," says RockAuto.com Vice President, Tom Taylor.

The average car on the road is about 11 years old. EPA data shows that vehicles (cars and trucks) built in 2005, on average, emit 447 grams of CO2 per mile. A 2016 vehicle is expected to generate about 90 grams less than that every mile. Producing less CO2 is good, but it would take more than 150,000 miles of driving for that 90 grams in CO2 savings to add up and compensate for the 14,000 kg (14 metric tons of CO2) it took to build the new car. Especially for someone who does not drive a lot, it could be greener to just keep a well maintained older vehicle than to build a new one.

How much do you save with an electric car?

Electric cars do not have tailpipes, but an electric car is still on the hook for "upstream CO2" emitted by the utility which provides the electricity for the car. The EPA estimates upstream CO2 is around 100 grams per mile for most electric vehicles. That is a whopping 347 grams less than what is produced by the average vehicle built in 2005, but it would still take over 40,000 miles of driving before the electric car saved enough CO2 to cover the greenhouse gas cost of building it in the first place.

The environmental cost of servicing older cars

What about the CO2 equivalent discharged while making parts to fix an older car? Brake pads, struts, tires and other parts wear out as the miles pile up. Fortunately, unless the vehicle is involved in an accident, the structure that makes up most of a car will never need to be replaced.

Many smaller parts like alternators and major parts like engines and transmissions can be remanufactured. Remanufacturing means only the components that experience wear are replaced. Metal housings and other major pieces can be cleaned, refinished and reused. "Remanufacturing saves more than 80 percent of the energy and raw materials required to build a new part from scratch," Taylor says. Less energy and materials means less CO2.

Car manufacturers are using more recycled materials and updating factories to use less energy. Government mandates require future vehicles become increasingly more fuel efficient. "Upstream CO2" may decline as utility companies find new, greener ways to generate electricity. Nevertheless, keeping your current car well maintained or buying a more fuel efficient used car are currently great choices if you want to be green.