First time car buyers are usually unsure whether or not they are buying the right car, making a good deal, or financing their purchase in the right way. Tips for first time buyers will make the process of buying a car easier to navigate and help avoid costly mistakes.
Method of Payment
First time buyers should decide whether they want to finance the purchase of their car or pay in cash. The majority of first time car buyers will not have the kind of cash it takes to buy a car outright readily available and will need to explore financing options. If you have a limited credit history, as most new buyers do, in-house financing packages offered by the dealership are often the best bet. Research what your financing options are before committing to the first offer you receive.
Consider On-Going Expenses
The on-going maintenance costs of cars vary from vehicle to vehicle. Research the realistic expenses associated with the cars you are thinking of buying. An idea of how much insurance, fuel, routine maintenance, and other on-going expenses are going to cost you will give a clearer understanding of the price range that fits your budget.
Be Prepared
Sit down and calculate the highest monthly payment you can easily afford on your current budget. It is prudent to try and negotiate the monthly payments below your maximum budget, but knowing where your realistic payment allowance caps out before you go to the dealership is vital. You should also look into your credit score and find someone who would be willing to cosign your loan in case you are unable to get approved alone. Bring pay studs and other income-verifying information with you to the dealership, along with the potential cosigner.
Pre-Purchase Inspection
A pre-purchase inspection is done by a qualified mechanic, for a fee, before you purchase a used car. Whether you are buying your car from a private party or a reputable dealership, it is always prudent to have a used car inspected by a third-party mechanic. The small fee you will be charged can save you from paying substantially more in the event of unforeseen issues in need of repair. Also, information you get about the car and its condition from the mechanic can be used as negotiation tools. Small but manageable issues like previous body damage can lower the price you pay for a used car.
First time car buyers should do research and be prepared before going to shop for a new car. By following these tips, inexperienced car shoppers can avoid common mistakes first time buyers often make.
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