Car Buying Tips: First Time Buyers

There are many factors you should consider when purchasing a new or used vehicle. Financing, fuels costs, insurance and inspection reports should all factor into your decision to buy a car. From new cars to used cars, here are a few tips to consider before driving away in your new purchase.

Do not overlook used cars

You can avoid overhead costs tacked on by a dealer by purchasing a used vehicle from an individual. Finance your purchase through a local bank. Look for a vehicle that has low mileage and only one to two owners.

Calculate fuel costs

Take notice of the highway and city miles per gallon when calculating fuel costs. However, keep in mind that these numbers are only achievable under optimal conditions. Check user reviews on the internet for actual numbers in average conditions.

Why you need a car inspection

You should never buy a used car without a car inspection. Although a car may look mint on the outside, there can be evidence of an accident inside. This can seriously deplete the value of a used car. A car inspection tests important engine parts, brakes, steering and computer components. Car inspection reports may allow you to negotiate to lower the price of the used car.

How will you pay for your purchase?

Are you planning to finance your used car or pay in cash? When you finance, keep in mind that you will be making payments for an average of five years. When choosing a financing company, compare interest rates and monthly payments.

If you choose to finance and are a first-time buyer, you may need a co-signer to sign on the loan. However, financing a car is a good way to start building your personal credit history.

Compare car insurance

Car insurance prices can vary depending on your age, your driving record and the model and year of the car. The age of your car can definitely affect your insurance. However, insurance on newer cars is not necessarily higher than older, used cars. Get free insurance quotes from a variety of companies for several cars on your list.

Car insurance companies offer discounts based on a variety of factors. Some insurance companies will give you a discount on vehicles with accessories such as anti-theft systems and fuel cut-off switches. Thus, newer vehicles may receive more discounts making the insurance affordable.

Whether you choose to purchase a new car or a used car, keep these tips in mind. You may save yourself future headaches by conducting some research before buying.

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