Those who just entering adulthood might’ve heard about a fresh graduate car loan but what about how to buy their very first car? Getting your first car can be fun, but there are a lot of things to take care of. Planning ahead can make the process go more smoothly and help you get the best car for you. Here are some important things to keep in mind as you look for your first car.
Consider Your Financial Situation And Make A Budget
Look at your money in a realistic way, too. That includes not only the price of the car, but also the cost of using and taking care of it, such as maintenance, insurance, gas, repairs, and parking. Find out how much it really costs to own a car.
Most loans don’t require a down payment, but it’s usually a good idea to make one. That way, you won’t have to borrow as much, and your monthly payment will be less.
Be Truthful About What You Need
Do you need a car every day to get to school or work, or just on the weekends? Where do you live, does it snow, rain, or get very hot? Think about how you spend your time and how you usually drive. Find out what you can: Find out about a car’s different features and options and how they may affect its price.
Explore Your Options
It’s a lot easier for you to buy your first car than it was for your parents. There are a lot of sellers on the Internet who are not in your area. These sellers may ship cars to your area for a fee, which can give you more options in your price range. Online car rankings in categories like safety or car type can help you do research and narrow down your choices (such as SUVs, and hybrids). Find out more about how to shop for a car online and even how to get a loan for one.
For new cars, get prices from more than one dealer. If you’re looking at used cars, be sure to ask for a Carfax report. This shows the history of a used car, including any accidents.
Try To Get A Loan
It might seem strange to look for a car loan before looking for a car, but it’s a good idea. It lets you know how much you can borrow and at what interest rate, so you don’t have to decide on financing at the dealership on the spot. Start with your bank or credit union, and then get quotes from other lenders to make sure you get the best rate. Find out more about how Bank of America can help you buy a car online.
Take A Test Drive
Once you’ve found a few cars that might fit your needs and budget, test drive each one to see how it makes you feel and how it drives. Try to test drive all the cars you’re thinking about on the same day so you can compare them easily. It’s a good idea to call ahead and make appointments so you can plan your day. This also gives you a chance to see how well each dealership treats customers.
Seal The Deal
You’ve done your research, know what you want, and have the money ready. When it’s time to make a deal, you’re in charge and can focus on carefully reading the contract. Make sure you understand the terms of any financing or warranty agreements before you sign, though.
Make sure you never miss a car payment after you leave by setting up automatic bill payments, so you can focus on where you’re going next.