Posted by on Sep 11, 2016 in General | Comments Off on Tips for Buying Your First Car

Tips for Buying Your First Car

 


Buying your first car can be a very stressful event. Not only do you have to find the right vehicle, you also have to balance your finances and your expectations as an average first-time buyer. Here are some tips to keep in mind when looking for a first car.

Financing Your First Car

Let’s be real, first time car buyers are usually rather young and do not have the money to buy their perfect dream car. Fortunately, there are options available to that majority. As a younger buyer with little money to work with, it is wise to stay away from leases. This article will be focusing on the two most popular options: paying with cash or getting an auto loan.

Paying cash is a great option for those who may have other fiscal responsibilities they need to take care of, like student loans or rent payments. There is a downside to this. You will either have to wait quite a long time to save up a sufficient amount of cash or go for a less than ideal car. If spending the least amount of money you can is your main goal, paying cash is your best bet. You may not end up with a fancy car, but you’ll get from point A to point B just fine. However, if you have a job that pays well, you may be able to afford a decent car within a few months of saving.

Getting a loan is another good option when buying your first car. However, it may not be the best for everyone. You will have to keep in mind how much you can afford each month, making comfortable wiggle-room for your other obligations. If your loan payment would be cutting your budget a bit close, you may want to reconsider the amount you should borrow. Keep in mind that you will also have to save up for a down payment, which should be around 20% of the car’s value. Along with that, you should also make sure you can pay off the car within 48 months. If you have a steady paying job, good credit/a willing cosigner, and a big enough budget, a car loan is a good path to take.

Choosing Your First Car
Your first car should be something you can rely on while you build yourself up financially. Here’s a few things to look for when choosing your first vehicle.

First off, you should decide the general type of vehicle you want to drive. Do you like smaller vehicles for their easy maneuvering and high MPG, or SUVs for their cargo space and safety? Do you have a favorite car company? Create a list of vehicles that you are interested in that are within your price range. It is best to choose newer models rather than older models so you do not need to worry about replacing car parts, since they are more likely to last you a while and generally have lower mileage. Not to mention, newer cars have more up-to-date safety features that can quite literally save your life.

Once you’ve figured out what vehicles you are interested in, it’s time to check what your insurance will look like if you were to purchase the car. Make a call to your car insurance company of choice and ask them for quotes on each model you are interested in purchasing. Factors like style, engine, and year can affect how high your car insurance will be. A new sports car will bear a higher quote than a family sedan that has a few years on it. Your age and location will also have a say in how high your quote will be. Try to find a vehicle with a lower insurance rate. It’ll save you a lot of cash in the long run.

You should also pay attention to how costly repairing your choice of vehicle will be. Some car makes are much more expensive to repair than others. If it’s a less common company, there will be a lower chance that someone in your area can fix it as well. Choose a make of vehicle that is more common and less costly to repair in order to avoid a car repair-induced headache.

Buying Your First Car

Buying from a car dealership or from a private party are the two most popular way to buy cars. There are benefits and downsides to both.

Private party sales occur when the owner of a vehicle sells it straight to the next owner, usually dealing locally. The benefit of this is that private sales are usually done because the owner needs to get rid of the car or wants to upgrade, not for the sole purpose of making money. You will most likely get a better deal from a private seller than a dealer. However, there are instances when private sellers will try to scam people. To protect yourself from this, always know the value of the car you are looking at. You may also want to ask the owner for the vehicle’s VIN and order a CARFAX report to be absolutely sure of the car’s history.

Car dealerships are the most convenient places to buy cars. It’s likely that they have the car you want and they also offer financing options. While convenient, dealerships exist to collect revenue. Because of this, you will have to pay more for the convenience. If you’ve decided to get a brand new car, you’ll have to bite the bullet and do your business with a dealership. However, if you’re looking for a used car, dealerships probably aren’t the best option for getting a good deal.

No matter where you go, it is always a good idea to bring someone along who is knowledgeable about cars if you aren’t. That way, they can let you know if anything is wrong and if it’s worth fixing. It is also smart to bring someone who experienced in buying cars so you don’t get raked over the coals at a dealership or ripped off from a private seller.

Once you drive away in your new ride, all of your hard work and research will pay off. Owning a car is a great feeling, especially when you know you’ve made a smart decision.
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