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Buying Your First Used Car: What You Should Know

Posted by Shabana Motors - 11 April, 2018

buy first used car

If you’re a first-time car buyer in Houston, you have lots of questions about what you need to know before buying your first used car.

Whether you’re a relatively new driver – or you’ve been driving for a number of years – take the time to understand the process of buying a used car.

Buying a first vehicle is an important step in your life. You must have reliable transportation. When properly negotiated, the process of buying your first used car builds your future credit as well.

Preparing for your first used car is simple when you do a little homework first.

Ready to get a new set of wheels? Call us today at 281-393-0085 »

A Used Car Can Save You Money

If you’ve received a new car deal, it may seem tempting at first. However, did you know that a used car’s value is often better than a new vehicle?

The old adage about new cars depreciating faster than used cars is usually true. A new vehicle does depreciate in market value once you take it off the dealer’s lot.

Consider the bottom line price, not only the monthly payment.

Know Your Budget

Preparing to buy your first used car includes a review of your finances.

It’s always possible to pay cash for your first used car, of course.

If you want to finance the purchase, answer:

  • What funds do you have available for the down payment?
  • What’s a comfortable monthly payment for you?
  • Do you have a trade-in? Check  Kelley Blue Book to predict your approximate trade-in value before you go to the used car dealer’s lot.

Use a loan calculator to estimate your monthly used car loan payment, based on the down payment and anticipated purchase price.

Never “stretch” financially to buy a used car.

Don’t Forget About Fuel, Insurance and Maintenance Costs

In addition to these basics, don’t forget to add in auto insurance and maintenance costs to your total calculations.

Preparing to buy your first used car should include an analysis of insurer-preferred vehicles. In addition to your age, geographical location, years of driving experience, and driving record, your insurer will consider the vehicle type and how many miles you’ll drive annually.

For instance, if the insurance company’s data says that owners of a certain vehicle submit more claims, your auto insurance rates may be higher. In addition, the insurer will factor in the purchase price, cost of repairs, safety tests, theft rate, and accident rate associated with the model.

Buying a reliable used car is one of the best ways to save money. A recent model used car offers many useful and enjoyable years ahead as well as contemporary safety systems and features.

If you have concerns about your credit, look for a used car dealer that accepts all credit types.

Check Vehicle Reliability

To reduce the chance of buying a less than reliable model, check Consumer Reports’ reliability results. Use the insights of others to buy a car that’s likely to perform well over time.

Want to find the car of your dreams?  View our inventory and get a head start!

Vehicle Safety Features

Many late model used cars offer important safety features. Consider a first used car that includes:

  • An antilock brake system (ABS). Antilock brakes keep the wheels from reaching a complete stop if hard braking occurs. The driver maintains control of the steering column.
  • Forward-collision warning (FCW). This feature uses laser, cameras, and radar (or a combination of these elements) to search for vehicles ahead. In the event of an imminent collision, FCW alerts the driver.
  • Electronic stability control (ESC). ESC prevents the vehicle from rotating when taking a turn too fast for driving conditions, e.g. inclement weather.
  • Head-protection side airbags. Side and/or side-curtain airbags offer protection against a side impact, e.g. if the vehicle is T-boned when crossing an intersection.
  • Backup camera. Most recent model cars have a backup camera. This feature activates when the driver places the vehicle in reverse. This feature helps the driver to avoid accidents with other vehicles or pedestrians and assists in parking.

Your Credit Determines Your Car Loan Rate

Good credit is valuable. If you’ve got good credit, you may qualify for lower interest rates on a used car loan.

Preparing for the purchase of your first used car should include checking your credit reports beforehand. It’s important to know what to expect.

Realize that many consumer reports contain errors. If you find errors in your Experian, Equifax, or TransUnion reports, take the time to dispute the errors. For instance, if your report contains an account that doesn’t belong to you – and the account is reporting as a charge off – you’ll want to ask the credit reporting agencies to remove it from your reports. It’s damaging to your credit.

If you don’t have credit yet, or if your credit isn’t perfect, don’t despair. Consider adding a co-signer or co-purchaser before you go to the used car dealer. This decision can help you lock in a more competitive loan rate.

Ready to improve your credit?  Download our free guide and get on the road to good credit »

Test Drive

Preparing for your first used car requires some homework. You’ve read car reviews, considered the model’s miles per gallon, reliability, or infotainment possibilities.

You may have read about ride or seat comfort—now it’s time to request a test drive to evaluate these important features. (Your opinions may differ from the car reviewer’s.)

Importantly, because you’re buying a used car, consider its past life. A pampered vehicle in almost-new condition is an exciting and cost-effective find.

Since this is your first used car purchase, bring a car-savvy friend or relative to help you choose a fine used car. Look the vehicle over—top to bottom, inside and out.

If the car looks good, you’ll want to discuss money and terms.

Negotiate Your First Used Car Purchase

Now that you’ve found “the car,” it’s important to discuss each aspect of the deal, including:

  • Purchase price
  • Financing (If you pre-arranged financing with a bank or credit union, it’s still okay to ask the dealer about their financing options.)

Consider taking the car to a qualified mechanic for an inspection.

Want to learn more about financing?  Contact us today »

Car Buyers Have Power

Yes. Although it may seem a little frightening to buy your first used car, the ultimate decision about where to purchase it is completely up to you.

The decision to purchase your first used car is also your first step towards greater financial freedom. By taking the time to prepare for the purchase of your car, you’ve got everything under control.

You’ll also enjoy the freedom of getting behind the wheel soon.

Enjoy Preparing for Your First Used Car

Knowledge really is power. Take a little time to prioritize your needs and wants in a first used car before heading to the dealer’s lot. With so many great vehicles to choose from, your ability to find the perfect used car has never been better.

Enjoy the process. If you’re ready to browse our inventory, we welcome the opportunity to answer your questions about a great first used car.  

Used Cars Houston Inventory

Topics: Used Cars


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