Whether you are a recent graduate who landed his first job or a newly married man or woman wanting to buy a new car for the family, nothing beats the uncertainty associated with purchasing your first vehicle. Considering the various options and the different aspects that beg for attention, your first auto purchase will surely be a memorable one.
Being a first-time auto buyer is never easy, but what comes easy often goes away easy, so take the challenge. No matter your reason for buying a new vehicle, whether it be for your own personal use or the convenience of your loved ones, knowing some key tips will make a big difference.
Don’t make the mistake of suddenly jumping into the deep end of the pool without knowing how deep it is. To help you with your first big purchase, we’ve compiled the top considerations you should think of when buying your first vehicle.
Your Budget
Whether it is a car or a pair of shoes, every planned purchase has a corresponding budget that the buyer has set. The choice of your first vehicle is mainly dependent on your budget. Paying a purchase by cash is ideal, but if you are considering a car loan, you must base your budget on various factors.
When determining your budget, make sure to consider the cost of your living. This includes your food, shelter, health insurance, and other expenses. Calculate how much you are spending on those every month, and use the remainder to calculate the amount that can be allotted for your monthly loan payment, fuel, car insurance, and maintenance. It also helps to research different auto loans and compare their terms and inclusions.
Brand New or Used
With endless options of car models available, another decision that you need to make is whether to buy a brand new car or a used one. Both have their pros and cons, and you must take the time to study them. Making a decision as big as buying a car is not done overnight. Certain considerations must be made as your decision will significantly impact your future financial situation.
Research
Being a first-time auto buyer can be daunting, and car sellers and dealers just add to this overwhelming feeling. Before going to a car dealer, make sure you do your research on the cars that you are choosing from. Compare their performance, specifications, and dimensions, as well as their prices.
Sometimes car dealers and sellers educate about car specs with the thought of winning the buyer over and signing the purchase contract. There is a possibility that they are not disclosing everything, so doing a quick online study of the car you want to buy will work to your advantage. Plus, it doesn’t really take much of your time, does it?
Insurance
Most first-time car buyers make the mistake of splurging all their money on the car itself and forgetting about an equally important element a car owner must consider: a good insurance plan. Take note of insurance coverage costs before you purchase a car, as this will allow you to allocate your budget more wisely. It is smart to research insurance companies online. For instance, by using sites like Joy Wallet to read esurance reviews, you can learn about the pros and cons of specific insurance companies and their typical pricing. This will ensure you purchase the best insurance that will help you in the future if anything was to go wrong with your car or you become involved in an accident. If you need any assistance getting your insurance started, then you could contact one call insurance (or somewhere similar) for advice on which insurance is best for you and to have all of your questions answered.
Depending on your coverage, your insurance will protect you from liability such as property damage and body injury. In case of a car accident, click here to learn more about the legal aspects and how an accident attorney can help.
Negotiate
When looking for the car you want, you first need to locate a reliable and convenient dealer. Once you have one in mind, schedule a visit and take a look at the car. This is also the time your dealer will educate you about the specs and dimensions of the vehicle.
Also, a reputable dealer will always present all the financing options available even if they have their own. This gives you the chance to take the paperwork home and see if you can get better rates through a credit union or your bank.
There is nothing wrong with trying to negotiate with the dealer, particularly if you are buying a used car. Often auto dealers will try to convince you to buy the car on your first visit, especially if he learns that this car purchase is your first. Even more than the salesperson earning a commission, this occurs because dealerships earn more money if visitors don’t have the opportunity to check for better deals.
Scams
Unfortunately, scams are also rampant in the car sales industry. One prominent scam is the Spot Delivery scam, where the dealer will send the buyer home with the vehicle. Naturally, the buyer will think everything has been settled, but only until the dealer calls after a few days, stating that additional paperwork is needed. Such paperwork will include resigning of the loan agreement with a demand for additional up-front payment or a higher interest rate.
To avoid this scam, make sure that you thoroughly read the contract before signing it. It also helps to have someone accompany you who can explain contract details to you and keep copies of the paperwork.
Make Your Plan and Buy Your Car
Last, but definitely not least, is your actual plan. A planned purchase is better than a rushed one in any aspect. Many first-time buyers fall into the temptation of buying the first car they are shown, only to find out they have agreed to add-on packages or will be paying higher interest rates. Take your time and enjoy the process. After all, you will never have another first car purchase experience again.
Sabrina Wright
Sabrina Wright is a vibrant young law writer currently writing her next big project. Her modern outlook on the law field is reflected on her informative pieces. Sabrina loves cooking and often invites her friends over for barbecue.
