Essential Information You Need To Know To Buy Your Very First Car
Buying your first car is exciting, though it can be scary. Cars are expensive and because of that, you’ll most likely keep your first car for a long time. It’s best to do everything you can to make your first car buying experience something you will remember with fondness. To do this, you’ll need a little knowledge about the car-buying process and to spend some time researching before you purchase. The time you spend upfront is time well spent since you’ll enjoy the peace of mind that comes with knowing you made a good purchase. Here are the things you need to know.
Costs
The costs of owning a car are more than just the purchase price. In addition to any car payment, you’ll need enough cash each month to pay for car insurance, gas or electricity, and regular and unexpected maintenance. Insurance rates vary based on your credit rating, the type of coverage needed, and the type of vehicle you are purchasing. Shop around for cheap car insurance by make, model, and year of the vehicle you are considering. Keep in mind, if you take out a loan on your vehicle, the lending institution will require more insurance to protect the amount of the loan.
Consider all the costs of owning a vehicle and your income, then decide if it’s the best time to purchase or if you should wait and use alternatives, such as public transportation or ride-sharing.
Vehicle Types
Often the choice of a first car is narrowed down by price. Still, consider your lifestyle and how you plan to use the vehicle. There are many types at each price point to choose from, such as sedans, SUVs, hybrids, and even trucks. Look for the number of doors, seats, and the amount of storage capacity that meets your needs. Shop online and run side-by-side comparisons.
New Vs. Used
Most first-time buyers, who aren’t lucky enough to receive a hand-me-down from a relative, will be shopping for a used vehicle. You can shop online retailers, private sellers, or dealerships. Fortunately, today’s car-buying experience is more transparent than ever. With the information available online, you can find what you need to make a good decision. Notice the mileage on the car, how many owners it had, and how it was maintained. Also, review the safety and reliability ratings before making a decision. Used cars can be a solid choice since new cars depreciate 20% on average the first year.
If shopping at a dealer, don’t get swayed by a more expensive vehicle. Many dealers offer manufacturer certifications and warranties on used cars. Go in with your research. Know the price of the car you want. Know what you can afford. Stay within your budget, and don’t focus solely on monthly payments. If you purchase a more expensive car than initially budgeted, you may still get payments that you can afford, but you will be making those payments for a long time.
Test Drive
The only way to know if you are comfortable in the car is to test drive. When test driving the vehicle, notice the important things, such as legroom, back seat space, trunk size, cameras, and how you feel getting in and out. You should enjoy your vehicle.
Financing
It’s best to save the money to buy a car outright. That way, you won’t have monthly payments on top of all the other expenses, but that isn’t always possible. If you don’t have enough to purchase the vehicle outright, you can try to obtain financing, though you’ll still need a down payment. If you decide to finance, know your credit score. Credit scores determine the interest rate and terms you’ll receive. Shop around for the best rates and understand the terms. Ask questions about anything you don’t understand before signing.
Now that you have a little more knowledge about the car buying process and know what research is required to make a good decision, you’ll have a much better experience.
Enjoy the ride!
